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UnitedHealth Group Incorporated (UNH) vs Wells Fargo & Company (WFC): Which Is the Better Buy in 2026?

As of 2026-11-01, UNH is overvalued at $407, with a DCF intrinsic value of $367 and a margin of safety of -11%. WFC is undervalued at $83, with an intrinsic value of $191 and a margin of safety of 56%. Of the two, WFC has the wider margin of safety.

UNH
UnitedHealth Group Incorporated
$406.97
VS
WFC
Wells Fargo & Company
$83.40

Rewards

UNH
  • ★UnitedHealth Group Incorporated scores 73/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.
WFC
  • ★Wells Fargo & Company scores 75/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.
  • ★Share count has been reduced by 19% over the past 4 years through buybacks, increasing each share's claim on earnings.
  • ★Each dollar of retained earnings has created $2.05 of earning power — management is an exceptional capital allocator.

Risks

UNH
  • ⚠ROIC has declined by 6.9 percentage points over the past 4 years, which may signal competitive erosion.
  • ⚠Gross margin of 20.0% is low, suggesting a competitive or commodity-like market with limited pricing power.
  • ⚠FCF yield of 7.3% suggests reasonable valuation assuming continued moderate growth.
WFC
  • ⚠Gross margin of 0.0% is low, suggesting a competitive or commodity-like market with limited pricing power.
  • ⚠Altman Z-Score of 0.28 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.

Key Valuation Metrics

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UNH
WFC
Valuation
$26.50B
Free Cash Flow
N/A
7.25%
FCF Yield
N/A
23.23
Trailing P/E
11.76
17.48
Forward P/E
10.41
Quality & Moat
11.51%
ROIC
4.84%
15.77%
ROE
12.91%
20.05%
Gross Margin
0.00%
1.03
PEG Ratio
1.30
Balance Sheet Safety
0.43
Net Debt / Equity
N/A
N/A
Interest Coverage
N/A
1.58
Net Debt / EBITDA
N/A
2.28%
Dividend Yield
2.40%
UNH: 4Ties: 1WFC: 3
UNHWFC

Historical Fundamentals

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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.

WFC

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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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
WFC
$3.13
created per $1 retained over 3 years
Exceptional Value Creator
Σ Retained
$41.56B
Δ Market Cap
+$129.93B
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

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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UNH
10.8% Overvalued
Price is 10.8% above estimated fair value
Current Price: $406.97
Fair Value: $367.30
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
WFC
56.3% Margin of Safety
Price is 56.3% below estimated fair value
Current Price: $83.40
Fair Value: $190.82
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued

Reverse DCF — Market-Implied Growth

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UNH

What growth rate is the market pricing in at $407?

+14.2%
Market-Implied Owner Earnings Growth
Standard FCF implies +4.2%

The market implies +14.2% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +4.2%, reflecting heavy growth investment.

WFC

Requires positive FCF to compute implied growth rate.

Economic Moat Score

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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.
WFC
75/100
Wide Moat
70+ Wide · 40-69 Narrow · <40 None

Wide moat driven primarily by revenue predictability. Reinvestment Efficiency 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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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.
WFC
-2.39
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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UNH
Insiders 0.2%Institutions 89.6%Retail & Other 10.1%
No. of Institutional Holders4,333
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.
WFC
Insiders 0.1%Institutions 79.4%Retail & Other 20.5%
No. of Institutional Holders3,562
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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UNH
0
Buys (3M)
0
Buys (12M)
No open market insider purchases found.
Open market purchases · includes direct & indirect ownership · excludes option exercises
WFC
0
Buys (3M)
0
Buys (12M)
No open market insider purchases found.
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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UNH
2
Sells (3M)
3
Sells (12M)
Total value (12M): $944,910
CONWAY PATRICK HUGH
Officer
$455,910
@ $390.00 · 2026-08-21
CONWAY PATRICK HUGH
Officer
$205,000
@ $410.00 · 2026-08-05
CONWAY PATRICK HUGH
Officer
$284,000
@ $355.00 · 2026-04-23
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
WFC
0
Sells (3M)
2
Sells (12M)
Total value (12M): $7.86M
ENGLE BRIDGET E.
Officer
$2.61M
@ $87.10 · 2026-02-26
PATTERSON ELLEN REILLY
General Counsel
$5.24M
@ $87.40 · 2026-02-26
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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UNH
FearGreed
😏Greed(62/100)

"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.
WFC
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.

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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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 (62)
WFC
⚪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)
View UNH Full AnalysisView WFC Full Analysis

Frequently Asked Questions: UNH vs WFC

Is UnitedHealth Group Incorporated or Wells Fargo & Company more undervalued in 2026?▼

Based on our discounted cash flow model, WFC trades at a 56.3% margin of safety (intrinsic value $191 vs. price $83), compared to UNH's -10.8% margin of safety (intrinsic $367 vs. $407).

Which stock has a wider economic moat, UnitedHealth Group Incorporated or Wells Fargo & Company?▼

WFC scores 75/100 (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 Wells Fargo & Company in financial distress?▼

WFC's Altman Z-Score of 0.3 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, UnitedHealth Group Incorporated or Wells Fargo & Company?▼

UNH earns 11.5% ROIC versus WFC's 4.8%. 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, UnitedHealth Group Incorporated's or Wells Fargo & Company's?▼

UNH's dividend earns a safety score of 84/100 (Very Safe), compared to WFC's 79/100 (Safe). UNH has raised its dividend for 3 consecutive years.

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