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Alexandria Real Estate Equities (ARE) vs UnitedHealth Group Incorporated (UNH): Which Is the Better Buy in 2026?

As of 2026-08-03, ARE is undervalued at $51, with a DCF intrinsic value of $9106274826 and a margin of safety of 100%. UNH is overvalued at $414, with an intrinsic value of $371 and a margin of safety of -12%. Of the two, ARE has the wider margin of safety.

ARE
Alexandria Real Estate Equities
$51.45
VS
UNH
UnitedHealth Group Incorporated
$414.40

Rewards

ARE
  • ★Gross margin of 68.6% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
UNH
  • ★UnitedHealth Group Incorporated scores 73/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.

Risks

ARE
  • ⚠PEG ratio of 3.24 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
  • ⚠Net debt/EBITDA of 6.7x indicates heavy leverage — it would take over 4 years of EBITDA to pay off net debt.
  • ⚠Altman Z-Score of 0.10 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.
UNH
  • ⚠ROIC has declined by 6.9 percentage points over the past 4 years, which may signal competitive erosion.
  • ⚠Gross margin of 19.5% is low, suggesting a competitive or commodity-like market with limited pricing power.
  • ⚠FCF yield of 6.0% suggests reasonable valuation assuming continued moderate growth.

Key Valuation Metrics

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ARE
UNH
Valuation
$1.41B
Free Cash Flow
$22.76B
N/A
FCF Yield
6.05%
N/A
Trailing P/E
31.25
-58.47
Forward P/E
18.47
Quality & Moat
1.14%
ROIC
14.15%
-4.14%
ROE
14.15%
68.59%
Gross Margin
19.51%
3.24
PEG Ratio
1.28
Balance Sheet Safety
0.64
Net Debt / Equity
0.40
N/A
Interest Coverage
N/A
6.70
Net Debt / EBITDA
1.73
5.60%
Dividend Yield
2.24%
ARE: 3Ties: 1UNH: 6
AREUNH

Historical Fundamentals

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ARE

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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ARE
N/A
Net losses over 3 years — test not applicable
Company had negative cumulative retained earnings
Σ Retained
$-3.66B
Δ Market Cap
$-96.73
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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ARE
100.0% Margin of Safety
Price is 100.0% below estimated fair value
Current Price: $51.45
Fair Value: $9106274826.16
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
UNH
11.7% Overvalued
Price is 11.7% above estimated fair value
Current Price: $414.40
Fair Value: $370.88
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued

Reverse DCF — Market-Implied Growth

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ARE

What growth rate is the market pricing in at $51?

-3.6%
Market-Implied FCF Growth Rate

Market below historical growth — potential opportunity.

UNH

What growth rate is the market pricing in at $414?

+14.4%
Market-Implied Owner Earnings Growth
Standard FCF implies +6.6%

The market implies +14.4% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +6.6%, reflecting heavy growth investment.

Economic Moat Score

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ARE
50/100
Narrow Moat
70+ Wide · 40-69 Narrow · <40 None

Narrow moat with margin stability as the key competitive advantage. Improving reinvestment efficiency would strengthen the moat.

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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ARE
-2.80
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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ARE
Insiders 1.4%Institutions 97.0%Retail & Other 1.7%
No. of Institutional Holders869
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 86.1%Retail & Other 13.6%
No. of Institutional Holders4,164
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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ARE
1
Buys (3M)
6
Buys (12M)
Total value (12M): $2.71M
MARCUS JOEL S
Officer and Director
$347,558
@ $46.34 · 2026-05-06
MARCUS JOEL S
Officer and Director
$320,416
@ $42.72 · 2026-05-05
MARCUS JOEL S
Officer and Director
$410,200
@ $41.02 · 2026-05-04
THOMAS GREGORY CALVIN
Chief Technology Officer
$143,500
@ $41.00 · 2026-04-30
MARCUS JOEL S
Officer and Director
$1.35M
@ $53.92 · 2026-02-12
MCGRATH SHEILA K.
Director
$141,360
@ $45.60 · 2025-12-10
Open market purchases · includes direct & indirect ownership · excludes option exercises
UNH
0
Buys (3M)
0
Buys (12M)
REX JOHN F
President
$5.00M
@ $291.12 · 2025-05-16
HEMSLEY STEPHEN J
Chief Executive Officer
$25.02M
@ $288.57 · 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
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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ARE
1
Sells (3M)
4
Sells (12M)
Total value (12M): $546,506
BINDA MARC E.
Chief Financial Officer
$108,000
@ $54.00 · 2026-06-09
KUHN HALLIE E.
Officer
$25,835
@ $48.20 · 2026-04-17
GOSSETT BRET E.
Officer
$251,792
@ $53.55 · 2026-02-27
ALSBROOK MADELEINE THORP
Officer
$160,879
@ $46.15 · 2025-12-16
ALSBROOK MADELEINE THORP
Officer
$446,202
@ $102.34 · 2024-12-16
MOGLIA PETER M
Chief Executive Officer
$1.02M
@ $102.26 · 2024-12-16
RYAN DANIEL J
Officer
$1.03M
@ $103.31 · 2024-12-11
GAVINET ANDRES
Officer
$2.09M
@ $104.29 · 2024-12-11
KASS HUNTER
President
$530,650
@ $106.13 · 2024-12-09
CAIN JAMES P
Director
$42,456
@ $124.87 · 2024-09-16
CIRUZZI VINCENT R. JR
Officer
$855,756
@ $123.29 · 2024-09-13
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
UNH
0
Sells (3M)
1
Sells (12M)
Total value (12M): $284,000
CONWAY PATRICK HUGH
Officer
$284,000
@ $355.00 · 2026-04-23
CONWAY PATRICK HUGH
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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ARE
FearGreed
😨Fear(39/100)

"Market is pessimistic — investigate whether fears are temporary or structural"

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
😐Neutral(57/100)

"Market is pricing this stock without strong emotion in either direction"

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

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ARE
⚪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: Fear (39)
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: Neutral (57)
View ARE Full AnalysisView UNH Full Analysis

Frequently Asked Questions: ARE vs UNH

Is Alexandria Real Estate Equities or UnitedHealth Group Incorporated more undervalued in 2026?▼

Based on our discounted cash flow model, ARE trades at a 100.0% margin of safety (intrinsic value $9106274826 vs. price $51), compared to UNH's -11.7% margin of safety (intrinsic $371 vs. $414).

Which stock has a wider economic moat, Alexandria Real Estate Equities or UnitedHealth Group Incorporated?▼

UNH scores 73/100 (Wide moat), while ARE scores 50/100 (Narrow moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

Is Alexandria Real Estate Equities in financial distress?▼

ARE's Altman Z-Score of 0.1 places it in the Distress zone, signaling elevated bankruptcy risk. UNH scores 2.9 (Grey zone). The Altman Z-Score is a five-factor model that predicts insolvency within two years; scores below 1.81 indicate significant distress.

Which stock has higher return on invested capital, Alexandria Real Estate Equities or UnitedHealth Group Incorporated?▼

UNH earns 14.1% ROIC versus ARE's 1.1%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.

Which dividend is safer, Alexandria Real Estate Equities's or UnitedHealth Group Incorporated's?▼

UNH's dividend earns a safety score of 84/100 (Very Safe), compared to ARE's 59/100 (Borderline). UNH has raised its dividend for 3 consecutive years.