UnitedHealth Group (NYSE:UNH – Get Free Report) and Joint (NASDAQ:JYNT – Get Free Report) are both medical companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, analyst recommendations, earnings, valuation and profitability.
Earnings and Valuation
This table compares UnitedHealth Group and Joint”s top-line revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
UnitedHealth Group | $400.28 billion | 0.68 | $14.41 billion | $23.88 | 12.65 |
Joint | $51.90 million | 3.40 | -$8.53 million | ($0.58) | -19.86 |
Profitability
This table compares UnitedHealth Group and Joint’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
UnitedHealth Group | 5.39% | 26.29% | 8.67% |
Joint | -9.86% | 1.60% | 0.41% |
Risk & Volatility
UnitedHealth Group has a beta of 0.44, meaning that its stock price is 56% less volatile than the S&P 500. Comparatively, Joint has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for UnitedHealth Group and Joint, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
UnitedHealth Group | 1 | 8 | 16 | 0 | 2.60 |
Joint | 0 | 0 | 2 | 0 | 3.00 |
UnitedHealth Group currently has a consensus price target of $427.09, suggesting a potential upside of 41.40%. Joint has a consensus price target of $15.50, suggesting a potential upside of 34.55%. Given UnitedHealth Group’s higher possible upside, equities research analysts plainly believe UnitedHealth Group is more favorable than Joint.
Insider and Institutional Ownership
87.9% of UnitedHealth Group shares are owned by institutional investors. Comparatively, 76.9% of Joint shares are owned by institutional investors. 0.3% of UnitedHealth Group shares are owned by insiders. Comparatively, 27.9% of Joint shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
UnitedHealth Group beats Joint on 10 of the 14 factors compared between the two stocks.
About UnitedHealth Group
UnitedHealth Group Incorporated operates as a diversified health care company in the United States. The company operates through four segments: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx. The UnitedHealthcare segment offers consumer-oriented health benefit plans and services for national employers, public sector employers, mid-sized employers, small businesses, and individuals; health care coverage, and health and well-being services to individuals age 50 and older addressing their needs; Medicaid plans, children's health insurance and health care programs; and health and dental benefits, and hospital and clinical services, as well as health care benefits products and services to state programs caring for the economically disadvantaged, medically underserved, and those without the benefit of employer-funded health care coverage. The Optum Health segment provides care delivery, care management, wellness and consumer engagement, and health financial services patients, consumers, care delivery systems, providers, employers, payers, and public-sector entities. The Optum Insight segment offers software and information products, advisory consulting arrangements, and managed services outsourcing contracts to hospital systems, physicians, health plans, governments, life sciences companies, and other organizations. The Optum Rx segment provides pharmacy care services and programs, including retail network contracting, home delivery, specialty and community health pharmacy services, infusion, and purchasing and clinical capabilities, as well as develops programs in the areas of step therapy, formulary management, drug adherence, and disease/drug therapy management. UnitedHealth Group Incorporated was founded in 1974 and is based in Minnetonka, Minnesota.
About Joint
The Joint Corp. operates and franchises chiropractic clinics in the United States. The company operates in two segments, Corporate Clinics and Franchise Operations. The Joint Corp. was incorporated in 2010 and is headquartered in Scottsdale, Arizona.
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