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Compare Stocks › UNH vs ZTS

UnitedHealth Group Incorporated (UNH) vs Zoetis Inc. (ZTS)

UNH
UnitedHealth Group Incorporated
$368.78
VS
ZTS
Zoetis Inc.
$114.16

Rewards

UNH
  • ★Dividend yield of 2.40% with a consistent or growing payout over the past 4 years.
ZTS
  • ★Zoetis Inc. has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
  • ★Gross margin of 71.9% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
  • ★Zoetis Inc. scores 97/100 on the Economic Moat Score (Wide Moat), with roic consistency as the strongest competitive dimension.

Risks

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.
ZTS
  • ⚠PEG ratio of 3.11 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
  • ⚠High leverage (2.80x debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.
  • ⚠Insiders have sold $2.5M worth of stock in the past 3 months — significant insider liquidation.

Key Valuation Metrics

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UNH
ZTS
Valuation
$17.69B
Free Cash Flow
$1.79B
5.28%
FCF Yield
3.72%
27.85
Trailing P/E
18.96
17.77
Forward P/E
15.07
Quality & Moat
15.60%
ROIC
20.52%
11.45%
ROE
80.25%
18.80%
Gross Margin
71.89%
39.79
PEG Ratio
3.11
Balance Sheet Safety
0.74
Debt / Equity
2.80
N/A
Interest Coverage
N/A
2.18
Net Debt / EBITDA
1.72
2.40%
Dividend Yield
1.86%
UNH: 4Ties: 1ZTS: 7
UNHZTS

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.

ZTS

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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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
ZTS
$-2.82
created per $1 retained over 3 years
Market Cap Declined
Σ Retained
$5.14B
Δ Market Cap
$-14.51B
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
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
ZTS
4.5% Margin of Safety
Price is 4.5% below estimated fair value
Current Price: $114.16
Fair Value: $119.53
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 $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.

ZTS

What growth rate is the market pricing in at $114?

+8.1%
Market-Implied Owner Earnings Growth
Standard FCF implies +13.6%

The market implies +8.1% Owner Earnings growth, roughly in line with history — reasonably priced.

Standard FCF implies +13.6%, reflecting ongoing growth investment.

Economic Moat Score

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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.
ZTS
97/100
Wide Moat
70+ Wide · 40-69 Narrow · <40 None

Wide moat with strength across all dimensions. ROIC Consistency 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.

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.
ZTS
-2.47
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 0.8%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.
ZTS
Insiders 0.1%Institutions 101.0%
No. of Institutional Holders2,304
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)
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
ZTS
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
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
ZTS
1
Sells (3M)
2
Sells (12M)
Total value (12M): $2.65M
PECK KRISTIN C
Chief Executive Officer
$2.54M
@ $127.05 · 2026-02-17
LAGANO ROXANNE
Officer
$110,840
@ $170.00 · 2025-06-03
REED WILLIE M
Director
$201,029
@ $166.14 · 2025-03-11
LAGANO ROXANNE
Officer
$55,420
@ $170.00 · 2025-03-10
PECK KRISTIN C
Chief Executive Officer
$59,852
@ $156.68 · 2025-02-19
LAGANO ROXANNE
Officer
$55,805
@ $171.18 · 2025-02-11
POLZER ROBERT J
Officer
$617,028
@ $177.46 · 2024-11-25
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(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.
ZTS
FearGreed
😨Fear(33/100)

"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.

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 (65)
ZTS
⚪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 (33)
View UNH Full AnalysisView ZTS Full Analysis
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