Critical Survey: United American Healthcare (OTCMKTS:UAHC) vs. UnitedHealth Group (NYSE:UNH)

United American Healthcare (OTCMKTS:UAHC) and UnitedHealth Group (NYSE:UNH) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, valuation, earnings, analyst recommendations, risk and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for United American Healthcare and UnitedHealth Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United American Healthcare	0	0	0	0	0.00
UnitedHealth Group	3	6	15	0	2.50

UnitedHealth Group has a consensus target price of $366.5238, indicating a potential upside of 49.24%. Given UnitedHealth Group’s stronger consensus rating and higher possible upside, analysts plainly believe UnitedHealth Group is more favorable than United American Healthcare.

Profitability

This table compares United American Healthcare and UnitedHealth Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
United American Healthcare	N/A	N/A	N/A
UnitedHealth Group	5.04%	23.32%	7.66%

Institutional & Insider Ownership

87.9% of UnitedHealth Group shares are held by institutional investors. 14.3% of United American Healthcare shares are held by insiders. Comparatively, 0.3% of UnitedHealth Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

United American Healthcare pays an annual dividend of $0.08 per share and has a dividend yield of 330.6%. UnitedHealth Group pays an annual dividend of $8.84 per share and has a dividend yield of 3.6%. UnitedHealth Group pays out 38.3% of its earnings in the form of a dividend. UnitedHealth Group has increased its dividend for 15 consecutive years.

Valuation and Earnings

This table compares United American Healthcare and UnitedHealth Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United American Healthcare	N/A	N/A	$240,000.00	N/A	N/A
UnitedHealth Group	$400.28 billion	0.56	$14.41 billion	$23.08	10.64

UnitedHealth Group has higher revenue and earnings than United American Healthcare.

Volatility and Risk

United American Healthcare has a beta of -1.5, meaning that its stock price is 250% less volatile than the S&P 500. Comparatively, UnitedHealth Group has a beta of 0.43, meaning that its stock price is 57% less volatile than the S&P 500.

Summary

UnitedHealth Group beats United American Healthcare on 11 of the 14 factors compared between the two stocks.

About United American Healthcare

United American Healthcare Corporation, through its subsidiaries, provides contract manufacturing services to the medical device industry. It also focuses on the production of natural rubber. The company was incorporated in 1983 and is based in Chicago, Illinois.

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.