Compare Stocks › HD vs UNH

Home Depot, Inc. (The) (HD) vs UnitedHealth Group Incorporated (UNH): Which Is the Better Buy in 2026?

As of 2026-08-03, HD is undervalued at $332, with a DCF intrinsic value of $248851992757 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, HD has the wider margin of safety.

Home Depot, Inc. (The)

$331.96

UNH

UnitedHealth Group Incorporated

$414.40

Rewards

★Home Depot, Inc. (The) has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
★Home Depot, Inc. (The) scores 87/100 on the Economic Moat Score (Wide Moat), with margin stability as the strongest competitive dimension.
★Return on equity has consistently exceeded 20% over 4 years, indicating efficient use of shareholder capital.

UNH

★UnitedHealth Group Incorporated scores 73/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.

Risks

⚠High leverage (4.48x net debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.
⚠11 insider sales with no purchases over the past 12 months — a persistent pattern of insider selling.

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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UNH

Valuation

$10.13B

Free Cash Flow

$22.76B

N/A

FCF Yield

6.05%

23.58

Trailing P/E

31.25

20.63

Forward P/E

18.47

Quality & Moat

20.22%

ROIC

14.15%

128.38%

ROE

14.15%

33.13%

Gross Margin

19.51%

1.87

PEG Ratio

1.28

Balance Sheet Safety

4.48

Net Debt / Equity

0.40

N/A

Interest Coverage

N/A

2.49

Net Debt / EBITDA

1.73

2.81%

Dividend Yield

2.24%

HD: 5Ties: 1UNH: 5

HDUNH

Historical Fundamentals

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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

$1 Retained Earnings Test

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$-0.00

created per $1 retained over 3 years

Market Cap Declined

Σ Retained

$17.64B

Δ Market Cap

$-14.59

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

Discounted Cash Flow (DCF) Analysis

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100.0% Margin of Safety

Price is 100.0% below estimated fair value

Current Price: $331.96

Strongly undervalued

Fairly valued

Strongly overvalued

Fair Value: $248851992757.04

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

UNH

11.7% Overvalued

Price is 11.7% above estimated fair value

Current Price: $414.40

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Fair Value: $370.88

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Reverse DCF — Market-Implied Growth

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What growth rate is the market pricing in at $332?

-14.7%

Market-Implied Owner Earnings Growth

Standard FCF implies -9.0%

The market implies -14.7% Owner Earnings growth, below historical trends — potential opportunity.

Standard FCF implies a more demanding -9.0%, reflecting heavy growth investment expected to generate future returns.

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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87/100

Wide Moat

70+ Wide · 40-69 Narrow · <40 None

Wide moat with strength across all dimensions. Margin Stability 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.

Forensic Accounting

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-2.40

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

Ownership Breakdown

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Insiders 0.1%Institutions 75.9%Retail & Other 24.1%

No. of Institutional Holders5,059

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. Institutional concentration can indicate smart-money conviction but also crowding risk.

Insider Buying Activity

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Buys (3M)

Buys (12M)

BRENNEMAN GREGORY D

Director

$999,767

@ $346.66 · 2025-03-14

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

UNH

Buys (3M)

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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Sells (3M)

Sells (12M)

Total value (12M): $23.56M

MCPHAIL RICHARD V

Chief Financial Officer

$940,670

@ $368.89 · 2026-03-04

DEATON JOHN A.

Officer

$661,617

@ $369.00 · 2026-03-04

ROSEBOROUGH TERESA WYNN

General Counsel

$1.00M

@ $348.52 · 2025-12-26

BROWN ANGIE

Chief Technology Officer

$695,948

@ $357.63 · 2025-12-12

BASTEK WILLIAM D

Officer

$974,445

@ $423.12 · 2025-09-12

BASTEK WILLIAM D

Officer

$1.55M

@ $410.23 · 2025-08-22

ROSEBOROUGH TERESA WYNN

General Counsel

$2.27M

@ $413.23 · 2025-08-22

DECKER EDWARD P.

Chief Executive Officer

$13.07M

@ $397.22 · 2025-08-21

BROWN ANGIE

Chief Technology Officer

$404,070

@ $404.07 · 2025-08-20

MCPHAIL RICHARD V

Chief Financial Officer

$1.36M

@ $403.66 · 2025-08-20

PADILLA HECTOR A

Officer

$640,609

@ $404.17 · 2025-08-20

DEATON JOHN A.

Officer

$3.29M

@ $369.99 · 2025-06-03

ROSEBOROUGH TERESA WYNN

General Counsel

$2.00M

@ $369.28 · 2025-05-28

SIDDIQUI FAHIM

Chief Technology Officer

$954,564

@ $367.14 · 2025-05-22

BASTEK WILLIAM D

Officer

$1.24M

@ $416.61 · 2024-11-22

HOURIGAN TIMOTHY A

Officer

$6.55M

@ $409.52 · 2024-11-18

PADILLA HECTOR A

Officer

$1.48M

@ $408.96 · 2024-11-14

CAMPBELL ANN-MARIE

Officer

$12.24M

@ $408.40 · 2024-11-14

ROSEBOROUGH TERESA WYNN

General Counsel

$9.03M

@ $408.91 · 2024-11-14

MCPHAIL RICHARD V

Chief Financial Officer

$2.65M

@ $408.45 · 2024-11-13

SCARDINO KIMBERLY R.

Officer

$617,100

@ $363.00 · 2024-08-19

ROSEBOROUGH TERESA WYNN

General Counsel

$1.87M

@ $359.32 · 2024-08-15

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

UNH

Sells (3M)

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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😐Neutral(46/100)

"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

😐Neutral(57/100)

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

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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⚪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 (46)

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 HD Full Analysis View UNH Full Analysis

Frequently Asked Questions: HD vs UNH

Is Home Depot, Inc. (The) or UnitedHealth Group Incorporated more undervalued in 2026?▼

Based on our discounted cash flow model, HD trades at a 100.0% margin of safety (intrinsic value $248851992757 vs. price $332), compared to UNH's -11.7% margin of safety (intrinsic $371 vs. $414).

Which stock has a wider economic moat, Home Depot, Inc. (The) or UnitedHealth Group Incorporated?▼

HD scores 87/100 (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. HD scores 3.5 (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 stock has higher return on invested capital, Home Depot, Inc. (The) or UnitedHealth Group Incorporated?▼

HD earns 20.2% ROIC versus UNH's 14.1%. 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, Home Depot, Inc. (The)'s or UnitedHealth Group Incorporated's?▼

UNH's dividend earns a safety score of 84/100 (Very Safe), compared to HD's 69/100 (Safe). UNH has raised its dividend for 3 consecutive years.