UNH vs MCK

For growth investors, McKesson Corporation (MCK) is the stronger pick with 16.

2% revenue growth year-over-year, versus 11. 8% for UnitedHealth Group Incorporated (UNH). UnitedHealth Group Incorporated (UNH) offers the better valuation at 27. 5x trailing P/E (19. 9x forward), making it the more compelling value choice. Analysts rate UnitedHealth Group Incorporated (UNH) a "Buy" — based on 52 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, UnitedHealth Group Incorporated (UNH) is the cheapest at 27.

5x versus McKesson Corporation at 31. 1x. On forward P/E, UnitedHealth Group Incorporated is actually cheaper at 19. 9x.

Over the past 5 years, McKesson Corporation (MCK) delivered a total return of +330.

1%, compared to -2. 8% for UnitedHealth Group Incorporated (UNH). Over 10 years, the gap is even starker: MCK returned +375. 1% versus UNH's +217. 0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), McKesson Corporation (MCK) is the lower-risk stock at 0.

04β versus UnitedHealth Group Incorporated's 0. 59β — meaning UNH is approximately 1261% more volatile than MCK relative to the S&P 500.

By revenue growth (latest reported year), McKesson Corporation (MCK) is pulling ahead at 16.

2% versus 11. 8% for UnitedHealth Group Incorporated (UNH). On earnings-per-share growth, the picture is similar: McKesson Corporation grew EPS 14. 9% year-over-year, compared to -14. 7% for UnitedHealth Group Incorporated. Over a 3-year CAGR, UNH leads at 11. 4% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

UnitedHealth Group Incorporated (UNH) is the more profitable company, earning 2.

7% net margin versus 0. 9% for McKesson Corporation — meaning it keeps 2. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: UNH leads at 4. 2% versus 1. 2% for MCK. At the gross margin level — before operating expenses — UNH leads at 18. 5%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, UnitedHealth Group Incorporated (UNH) trades at 19.

9x forward P/E versus 20. 5x for McKesson Corporation — 0. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for MCK: 25. 7% to $1006. 50.

All stocks in this comparison pay dividends.

UnitedHealth Group Incorporated (UNH) offers the highest yield at 2. 4%, versus 0. 3% for McKesson Corporation (MCK).

For long-horizon retirement investors, McKesson Corporation (MCK) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

04), +375. 1% 10Y return). Both have compounded well over 10 years (MCK: +375. 1%, UNH: +217. 0%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Healthcare sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: UNH is a large-cap quality compounder stock; MCK is a mid-cap high-growth stock. UNH pays a dividend while MCK does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.