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Adobe Inc. (ADBE) vs UnitedHealth Group Incorporated (UNH): Which Is the Better Buy in 2026?

As of 2026-06-19, ADBE is undervalued at $195, with a DCF intrinsic value of $558 and a margin of safety of 65%. UNH is fairly valued at $401, with an intrinsic value of $376 and a margin of safety of -7%. Of the two, ADBE has the wider margin of safety.

ADBE
Adobe Inc.
$195.16
VS
UNH
UnitedHealth Group Incorporated
$400.96

Rewards

ADBE
  • ★Adobe Inc. has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
  • ★Gross margin of 89.4% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
  • ★Adobe Inc. scores 100/100 on the Economic Moat Score (Wide Moat), with roic consistency as the strongest competitive dimension.
UNH
  • ★UnitedHealth Group Incorporated scores 73/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.

Risks

ADBE
    UNH
    • ⚠ROIC has declined by 6.9 percentage points over the past 4 years, which may signal competitive erosion.
    • ⚠Gross margin of 18.8% is low, suggesting a competitive or commodity-like market with limited pricing power.
    • ⚠Free cash flow has declined at a 11.8% CAGR over the past 4 years — a concerning trend.

    Key Valuation Metrics

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    ADBE
    UNH
    Valuation
    $9.22B
    Free Cash Flow
    $17.69B
    11.88%
    FCF Yield
    4.86%
    11.16
    Trailing P/E
    30.17
    7.09
    Forward P/E
    19.18
    Quality & Moat
    37.82%
    ROIC
    15.60%
    62.95%
    ROE
    12.18%
    89.40%
    Gross Margin
    18.80%
    0.57
    PEG Ratio
    1.41
    Balance Sheet Safety
    0.13
    Net Debt / Equity
    0.44
    N/A
    Interest Coverage
    N/A
    0.15
    Net Debt / EBITDA
    2.18
    0.00%
    Dividend Yield
    2.21%
    ADBE: 9Ties: 1UNH: 2
    ADBEUNH

    Historical Fundamentals

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    ADBE

    Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

    UNH

    Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

    Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

    $1 Retained Earnings Test

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    ADBE
    $-0.60
    created per $1 retained over 3 years
    Market Cap Declined
    Σ Retained
    $18.12B
    Δ Market Cap
    $-10.93B
    Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
    > $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
    UNH
    $-7.37
    created per $1 retained over 3 years
    Market Cap Declined
    Σ Retained
    $26.63B
    Δ Market Cap
    $-196.16B
    Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
    > $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

    Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
    > $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

    Discounted Cash Flow (DCF) Analysis

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    ADBE
    65.0% Margin of Safety
    Price is 65.0% below estimated fair value
    Current Price: $195.16
    Fair Value: $558.28
    Strongly undervalued
    Undervalued
    Fairly valued
    Overvalued
    Strongly overvalued
    UNH
    6.6% Overvalued
    Price is 6.6% above estimated fair value
    Current Price: $400.96
    Fair Value: $376.14
    Strongly undervalued
    Undervalued
    Fairly valued
    Overvalued
    Strongly overvalued

    Reverse DCF — Market-Implied Growth

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    ADBE

    What growth rate is the market pricing in at $195?

    -1.6%
    Market-Implied Owner Earnings Growth
    Standard FCF implies -4.0%

    The market implies -1.6% Owner Earnings growth, below historical trends — potential opportunity.

    Standard FCF implies a more demanding -4.0%, reflecting heavy growth investment expected to generate future returns.

    UNH

    What growth rate is the market pricing in at $401?

    +14.1%
    Market-Implied Owner Earnings Growth
    Standard FCF implies +9.8%

    The market implies +14.1% Owner Earnings growth, above historical trends.

    Standard FCF implies a demanding +9.8%, reflecting heavy growth investment.

    Economic Moat Score

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    ADBE
    100/100
    Wide Moat
    70+ Wide · 40-69 Narrow · <40 None

    Wide moat with strength across all dimensions. ROIC Consistency is the standout factor.

    Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.
    UNH
    73/100
    Wide Moat
    70+ Wide · 40-69 Narrow · <40 None

    Wide moat driven primarily by revenue predictability. Margin Stability is the area most vulnerable to competitive pressure.

    Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.

    Forensic Accounting

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    ADBE
    -2.85
    Unlikely Manipulator
    Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

    M-Score Trend

    Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
    UNH
    -2.45
    Unlikely Manipulator
    Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

    M-Score Trend

    Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

    Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

    Ownership Breakdown

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    ADBE
    Insiders 0.2%Institutions 88.1%Retail & Other 11.7%
    No. of Institutional Holders3,191
    High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.
    UNH
    Insiders 0.2%Institutions 85.9%Retail & Other 13.8%
    No. of Institutional Holders4,020
    High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.

    High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.

    Insider Buying Activity

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    ADBE
    0
    Buys (3M)
    0
    Buys (12M)
    DURN DANIEL J
    Chief Financial Officer
    $507,758
    @ $390.58 · 2025-03-20
    RICKS DAVID A
    Director
    $998,946
    @ $443.98 · 2025-01-28
    Open market purchases · includes direct & indirect ownership · excludes option exercises
    UNH
    0
    Buys (3M)
    0
    Buys (12M)
    HEMSLEY STEPHEN J
    Chief Executive Officer
    $25.02M
    @ $288.57 · 2025-05-16
    REX JOHN F
    President
    $5.00M
    @ $291.12 · 2025-05-16
    GIL KRISTEN
    Director
    $1.00M
    @ $271.17 · 2025-05-15
    FLYNN TIMOTHY PATRICK
    Director
    $491,786
    @ $320.80 · 2025-05-14
    NOSEWORTHY JOHN H
    Director
    $93,647
    @ $312.16 · 2025-05-14
    FLYNN TIMOTHY PATRICK
    Director
    $511,575
    @ $511.57 · 2025-01-17
    Open market purchases · includes direct & indirect ownership · excludes option exercises

    Open market purchases · includes direct & indirect ownership · excludes option exercises.

    Insider Selling Activity

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    ADBE
    2
    Sells (3M)
    4
    Sells (12M)
    Total value (12M): $1.05M
    FORUSZ JILLIAN
    Officer
    $185,915
    @ $246.25 · 2026-04-30
    DURN DANIEL J
    Chief Financial Officer
    $331,355
    @ $248.02 · 2026-04-20
    DURN DANIEL J
    Chief Financial Officer
    $485,323
    @ $294.85 · 2026-01-27
    FORUSZ JILLIAN
    Officer
    $50,344
    @ $337.88 · 2025-10-31
    FORUSZ JILLIAN
    Officer
    $175,828
    @ $380.58 · 2025-05-02
    FORUSZ JILLIAN
    Officer
    $145,567
    @ $435.83 · 2025-01-28
    BELSKY SCOTT K
    Officer
    $2.05M
    @ $431.61 · 2025-01-27
    BANSE AMY L
    Director
    $333,300
    @ $550.00 · 2024-12-06
    FORUSZ JILLIAN
    Officer
    $327,987
    @ $485.19 · 2024-10-29
    BELSKY SCOTT K
    Officer
    $232,525
    @ $483.42 · 2024-10-25
    BELSKY SCOTT K
    Officer
    $1.14M
    @ $511.48 · 2024-10-16
    DURN DANIEL J
    Chief Financial Officer
    $3.35M
    @ $515.44 · 2024-09-17
    GARFIELD MARK S.
    Officer
    $52,089
    @ $537.00 · 2024-07-25
    BELSKY SCOTT K
    Officer
    $258,297
    @ $537.00 · 2024-07-25
    GARFIELD MARK S.
    Officer
    $85,255
    @ $564.60 · 2024-07-16
    BELSKY SCOTT K
    Officer
    $1.25M
    @ $561.60 · 2024-07-16
    Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
    UNH
    1
    Sells (3M)
    1
    Sells (12M)
    Total value (12M): $284,000
    CONWAY PATRICK HUGH M.D.
    Officer
    $284,000
    @ $355.00 · 2026-04-23
    CONWAY PATRICK HUGH M.D.
    Chief Executive Officer
    $179,645
    @ $305.00 · 2025-06-10
    Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

    Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.

    🎭 Mr. Market's Mood

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    ADBE
    FearGreed
    🥶Extreme Fear(17/100)

    "Mr. Market is panicking — potential buying opportunity if fundamentals are strong"

    Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
    UNH
    FearGreed
    😏Greed(68/100)

    "Market is optimistic — be cautious and ensure you have a margin of safety"

    Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

    Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

    ⚖️ Buffett Signal

    Learn more →
    ADBE
    ⚪Awaiting DCF Data

    The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

    DCF Margin of Safety: N/AMr. Market's Mood: Extreme Fear (17)
    UNH
    ⚪Awaiting DCF Data

    The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

    DCF Margin of Safety: N/AMr. Market's Mood: Greed (68)
    View ADBE Full AnalysisView UNH Full Analysis

    Frequently Asked Questions: ADBE vs UNH

    Is Adobe Inc. or UnitedHealth Group Incorporated more undervalued in 2026?▼

    Based on our discounted cash flow model, ADBE trades at a 65.0% margin of safety (intrinsic value $558 vs. price $195), compared to UNH's -6.6% margin of safety (intrinsic $376 vs. $401).

    Which stock has a wider economic moat, Adobe Inc. or UnitedHealth Group Incorporated?▼

    ADBE scores 100/100 (Wide moat), while UNH scores 73/100 (Wide moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

    Is UnitedHealth Group Incorporated in financial distress?▼

    UNH's Altman Z-Score of 2.9 places it in the Grey zone, signaling elevated bankruptcy risk. ADBE scores 8.8 (Safe zone). The Altman Z-Score is a five-factor model that predicts insolvency within two years; scores below 1.81 indicate significant distress.

    Which company has better free cash flow, Adobe Inc. or UnitedHealth Group Incorporated?▼

    Adobe Inc. (ADBE) generates a 11.9% free cash flow yield, compared to UnitedHealth Group Incorporated's 4.9%. A higher FCF yield means the business converts more of its market value into cash that can be returned to shareholders or reinvested.

    Which stock has higher return on invested capital, Adobe Inc. or UnitedHealth Group Incorporated?▼

    ADBE earns 37.8% ROIC versus UNH's 15.6%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.

    ADBE vs UNH: Which Is the Better Buy in 2026? | SafetyMargin.io