Critical Analysis: UnitedHealth Group (NYSE:UNH) & First Physicians Capital Group (OTCMKTS:FPCG)

UnitedHealth Group (NYSE:UNHGet Free Report) and First Physicians Capital Group (OTCMKTS:FPCGGet Free Report) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, dividends, risk and profitability.

Volatility & Risk

UnitedHealth Group has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500. Comparatively, First Physicians Capital Group has a beta of -12.47, suggesting that its stock price is 1,347% less volatile than the S&P 500.

Profitability

This table compares UnitedHealth Group and First Physicians Capital Group’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%
First Physicians Capital Group N/A N/A N/A

Valuation & Earnings

This table compares UnitedHealth Group and First Physicians Capital Group”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
UnitedHealth Group $400.28 billion 0.63 $14.41 billion $23.88 11.66
First Physicians Capital Group N/A N/A N/A N/A N/A

UnitedHealth Group has higher revenue and earnings than First Physicians Capital Group.

Institutional and Insider Ownership

87.9% of UnitedHealth Group shares are held by institutional investors. 0.3% of UnitedHealth Group shares are held by company insiders. Comparatively, 12.1% of First Physicians Capital Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for UnitedHealth Group and First Physicians Capital Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
UnitedHealth Group 1 8 15 0 2.58
First Physicians Capital Group 0 0 0 0 0.00

UnitedHealth Group currently has a consensus price target of $394.43, suggesting a potential upside of 41.61%. Given UnitedHealth Group’s stronger consensus rating and higher probable upside, analysts clearly believe UnitedHealth Group is more favorable than First Physicians Capital Group.

Summary

UnitedHealth Group beats First Physicians Capital Group on 9 of the 10 factors compared between the two stocks.

About UnitedHealth Group

(Get Free Report)

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 First Physicians Capital Group

(Get Free Report)

Avem Health Partners, Inc. provides financial, technology, management, and capital solutions to hospitals in rural markets. Its services benefit residents and their physicians, as well as help to sustain and preserve the quality of healthcare services in these communities. The company was founded in 1980 and is headquartered in Oklahoma City, Oklahoma.

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