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ELAN vs UNH

ELAN
Elanco Animal Health Incorporated
NEUTRAL
Price
$22.75
Market Cap
$11.36B
Sector
Healthcare
AI Confidence
80%
UNH
UnitedHealth Group Incorporated
NEUTRAL
Price
$323.48
Market Cap
$293.61B
Sector
Healthcare
AI Confidence
85%

Valuation

P/E Ratio
ELAN
--
UNH
24.43
Forward P/E
ELAN
19.47
UNH
16.08
P/B Ratio
ELAN
1.73
UNH
3.11
P/S Ratio
ELAN
2.41
UNH
0.66
EV/EBITDA
ELAN
16.75
UNH
16.47

Profitability

Gross Margin
ELAN
55.0%
UNH
18.53%
Operating Margin
ELAN
2.27%
UNH
0.34%
Profit Margin
ELAN
-4.92%
UNH
2.69%
ROE
ELAN
-3.67%
UNH
12.54%
ROA
ELAN
1.25%
UNH
3.9%

Growth

Revenue Growth
ELAN
12.2%
UNH
12.3%
Earnings Growth
ELAN
--
UNH
-99.9%

Financial Health

Debt/Equity
ELAN
0.68
UNH
0.82
Current Ratio
ELAN
2.17
UNH
0.79
Quick Ratio
ELAN
1.0
UNH
0.7

Dividends

Dividend Yield
ELAN
--
UNH
2.73%
Payout Ratio
ELAN
0.0%
UNH
65.99%

AI Verdict

ELAN NEUTRAL

ELAN exhibits a critical divergence between market sentiment and fundamental health, highlighted by a very weak Piotroski F-Score of 2/9. While the company has seen a massive 1-year price surge of 140.5% and maintains strong analyst support (Strong Buy), the underlying financials show negative profit margins and negative ROE. Revenue growth remains positive at 12.2%, and the company consistently beats earnings estimates, but the high PEG ratio of 3.83 suggests the stock is significantly overvalued relative to its actual growth. The outlook is neutral as the market bets on a turnaround that the current deterministic health scores do not yet support.

Strengths
Strong Gross Margin of 55.00%
Consistent track record of beating earnings estimates (3/4 last 4 quarters)
Positive YoY and Q/Q revenue growth (~12%)
Risks
Very weak Piotroski F-Score (2/9) indicating deteriorating financial health
Negative Profit Margin (-4.92%) and negative ROE (-3.67%)
High PEG Ratio (3.83) indicating overvaluation relative to growth
UNH NEUTRAL

UnitedHealth Group presents a conflicted profile with a stable but mediocre Piotroski F-Score of 4/9 and a significant disconnect between current price ($323.48) and defensive fair value (Graham Number: $175.91). While revenue growth remains robust at 12.3%, the company has suffered a catastrophic collapse in YoY earnings growth (-99.9%), suggesting severe short-term headwinds or one-time accounting shocks. Technical trends are currently bearish (0/100), though a recent one-month bounce and a favorable Forward P/E of 16.08 indicate analyst expectations of a recovery. The stock is currently trading at a significant premium to its intrinsic value, relying heavily on its market dominance and future earnings normalization.

Strengths
Strong consistent revenue growth (12.3% YoY)
Manageable Debt/Equity ratio of 0.82
Attractive Forward P/E (16.08) compared to current P/E (24.43)
Risks
Extreme earnings volatility (YoY Earnings Growth -99.9%)
Poor liquidity indicated by a Current Ratio of 0.79
Extremely thin operating margins (0.34%)

Compare Another Pair

ELAN vs UNH: Head-to-Head Comparison

This page compares Elanco Animal Health Incorporated (ELAN) and UnitedHealth Group Incorporated (UNH) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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