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Compare Stocks › MGM vs UNH

MGM Resorts International (MGM) vs UnitedHealth Group Incorporated (UNH)

MGM
MGM Resorts International
$38.50
VS
UNH
UnitedHealth Group Incorporated
$368.78

Rewards

MGM
  • ★Free cash flow has grown at a 13.8% CAGR over the past 4 years, demonstrating strong earnings power growth.
  • ★FCF yield of 14.8% is historically attractive — the business generates significant cash relative to its price.
UNH
  • ★Dividend yield of 2.40% with a consistent or growing payout over the past 4 years.

Risks

MGM
  • ⚠Trailing P/E of 52.7x is 148% above the historical average of 21.3x — the stock trades at a premium to its own history.
  • ⚠High leverage (9.51x debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.
  • ⚠Net debt/EBITDA of 12.8x indicates heavy leverage — it would take over 4 years of EBITDA to pay off net debt.
UNH
  • ⚠ROIC has declined by 7.9 percentage points over the observed period, which may signal competitive erosion.
  • ⚠Gross margin of 18.8% is low, suggesting a competitive or commodity-like market with limited pricing power.
  • ⚠FCF yield of 5.3% suggests reasonable valuation assuming continued moderate growth.

Key Valuation Metrics

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MGM
UNH
Valuation
$1.46B
Free Cash Flow
$17.69B
14.83%
FCF Yield
5.28%
52.74
Trailing P/E
27.85
16.72
Forward P/E
17.77
Quality & Moat
2.74%
ROIC
15.60%
6.18%
ROE
11.45%
44.16%
Gross Margin
18.80%
1.14
PEG Ratio
39.79
Balance Sheet Safety
9.51
Debt / Equity
0.74
N/A
Interest Coverage
N/A
12.84
Net Debt / EBITDA
2.18
N/A
Dividend Yield
2.40%
MGM: 4Ties: 1UNH: 6
MGMUNH

Historical Fundamentals

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MGM

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

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.

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

$1 Retained Earnings Test

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MGM
$-1.57
created per $1 retained over 3 years
Market Cap Declined
Σ Retained
$2.09B
Δ Market Cap
$-3.28B
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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MGM
Insufficient Data
Enter initial FCF to calculate intrinsic value
Current Price: $38.50
Fair Value: $0.00
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
UNH
9.6% Overvalued
Price is 9.6% above estimated fair value
Current Price: $368.78
Fair Value: $336.33
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued

Reverse DCF — Market-Implied Growth

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MGM

What growth rate is the market pricing in at $39?

+39.2%
Market-Implied Owner Earnings Growth
Standard FCF implies +11.7%

The market implies +39.2% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +11.7%, reflecting heavy growth investment.

UNH

What growth rate is the market pricing in at $369?

+13.9%
Market-Implied Owner Earnings Growth
Standard FCF implies +8.7%

The market implies +13.9% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +8.7%, reflecting heavy growth investment.

Economic Moat Score

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MGM
36/100
No Moat
70+ Wide · 40-69 Narrow · <40 None

No durable moat detected, though reinvestment efficiency shows some competitive positioning. The business lacks consistent evidence of sustainable advantages.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 5 years of fundamental data.
UNH
64/100
Narrow Moat
70+ Wide · 40-69 Narrow · <40 None

Narrow moat with revenue predictability as the key competitive advantage. Improving margin stability 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.

Forensic Accounting

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MGM
-2.72
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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MGM
Insiders 27.4%Institutions 72.4%Retail & Other 0.2%
No. of Institutional Holders805
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 0.8%Institutions 84.7%Retail & Other 14.5%
No. of Institutional Holders4,077
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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MGM
1
Buys (3M)
2
Buys (12M)
Total value (12M): $77.11M
IAC INC.
Beneficial Owner of more than 10% of a Class of Security
$37.22M
@ $37.22 · 2026-03-24
IAC INC.
Beneficial Owner of more than 10% of a Class of Security
$39.88M
@ $36.30 · 2025-12-05
HALKYARD JONATHAN S
Chief Financial Officer
$321,700
@ $32.17 · 2025-03-06
SALEM PAUL J
Director
$4.99M
@ $33.80 · 2024-08-05
HALKYARD JONATHAN S
Chief Financial Officer
$340,000
@ $34.00 · 2024-08-05
HORNBUCKLE WILLIAM J IV
Chief Executive Officer
$1.99M
@ $33.73 · 2024-08-05
Open market purchases · includes direct & indirect ownership · excludes option exercises
UNH
0
Buys (3M)
5
Buys (12M)
Total value (12M): $31.61M
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
NOSEWORTHY JOHN H
Director
$93,647
@ $312.16 · 2025-05-14
FLYNN TIMOTHY PATRICK
Director
$491,786
@ $320.80 · 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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MGM
0
Sells (3M)
1
Sells (12M)
Total value (12M): $2.17M
MCMANUS JOHN M
Officer
$2.17M
@ $36.12 · 2025-09-15
MEINERT TODD
Officer
$227,041
@ $37.84 · 2025-02-19
JAMMET MARY CHRIS
Director
$178,582
@ $41.11 · 2024-05-20
HERMAN ALEXIS M
Director
$180,276
@ $41.50 · 2024-05-17
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
UNH
1
Sells (3M)
2
Sells (12M)
Total value (12M): $463,645
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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MGM
FearGreed
😐Neutral(54/100)

"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.
UNH
FearGreed
😏Greed(65/100)

"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

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MGM
⚪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 (54)
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 (65)
View MGM Full AnalysisView UNH Full Analysis
MGM vs UNH: Which Is the Better Buy? | SafetyMargin.io