Seagate Technology Holdings plc (STX) vs UnitedHealth Group Incorporated (UNH): Which Is the Better Buy in 2026?
As of 2026-06-19, STX is overvalued at $1070, with a DCF intrinsic value of $480 and a margin of safety of -123%. UNH is fairly valued at $401, with an intrinsic value of $376 and a margin of safety of -7%. Of the two, UNH has the wider margin of safety.
Rewards
- ★PEG ratio of 0.71 suggests the stock is undervalued relative to its growth rate — paying less than 1x for each unit of earnings growth.
- ★Altman Z-Score of 4.80 indicates very low bankruptcy risk — the company is firmly in the safe zone.
- ★UnitedHealth Group Incorporated scores 73/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.
Risks
- ⚠FCF yield of 0.7% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
- ⚠Trailing P/E of 101.7x is 273% above the historical average of 27.3x — the stock trades at a premium to its own history.
- ⚠High leverage (2.77x net debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.
- ⚠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
Learn more →Historical Fundamentals
Learn more →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.
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
Learn more →> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
> $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
Learn more →Reverse DCF — Market-Implied Growth
Learn more →What growth rate is the market pricing in at $1070?
The market implies +37.3% Owner Earnings growth, above historical trends.
Standard FCF implies a demanding +36.0%, reflecting heavy growth investment.
What growth rate is the market pricing in at $401?
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
Learn more →No durable moat detected, though reinvestment efficiency shows some competitive positioning. The business lacks consistent evidence of sustainable advantages.
Wide moat driven primarily by revenue predictability. Margin Stability is the area most vulnerable to competitive pressure.
Forensic Accounting
Learn more →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.
Ownership Breakdown
Learn more →High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.
Insider Buying Activity
Learn more →Open market purchases · includes direct & indirect ownership · excludes option exercises.
Insider Selling Activity
Learn more →Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.
🎭 Mr. Market's Mood
Learn more →"Market is optimistic — be cautious and ensure you have a margin of safety"
"Market is optimistic — be cautious and ensure you have a margin of safety"
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 →The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
Frequently Asked Questions: STX vs UNH
Is Seagate Technology Holdings plc or UnitedHealth Group Incorporated more undervalued in 2026?▼
Based on our discounted cash flow model, UNH trades at a -6.6% margin of safety (intrinsic value $376 vs. price $401), compared to STX's -123.1% margin of safety (intrinsic $480 vs. $1070).
Which stock has a wider economic moat, Seagate Technology Holdings plc or UnitedHealth Group Incorporated?▼
UNH scores 73/100 (Wide moat), while STX scores 32/100 (None 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. STX scores 4.8 (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, Seagate Technology Holdings plc or UnitedHealth Group Incorporated?▼
UnitedHealth Group Incorporated (UNH) generates a 4.9% free cash flow yield, compared to Seagate Technology Holdings plc's 0.7%. 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, Seagate Technology Holdings plc or UnitedHealth Group Incorporated?▼
STX earns 58.8% 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.
Which dividend is safer, Seagate Technology Holdings plc's or UnitedHealth Group Incorporated's?▼
UNH's dividend earns a safety score of 84/100 (Very Safe), compared to STX's 73/100 (Safe). UNH has raised its dividend for 3 consecutive years.
Does Seagate Technology Holdings plc have accounting red flags?▼
STX's Beneish M-Score of -1.5 flags it as a likely earnings manipulator (above the -1.78 threshold). By contrast, UNH scores -2.5, within the normal range. The Beneish model detects aggressive accounting through eight financial ratios.