HD vs UNH: Which Is the Better Buy?
Side-by-side comparison of The Home Depot, Inc. and UnitedHealth Group Incorporated — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-04-11.
The Home Depot, Inc. · Consumer Cyclical
$337.34
+12.1% upside to fair value
Med Conviction
Grade B
VS
UnitedHealth Group Incorporated · Healthcare
$304.33
+41.3% upside to fair value
Med Conviction
Grade B+
QuantHub Verdict
UNH has more upside to fair value
(+41.3%).
UNH trades at a lower forward P/E
(15.1x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
HD |
UNH |
| Current Price |
$337.34 |
$304.33 |
| Fair Value Estimate |
$378.00 |
$430.00 |
| Upside to Fair Value |
+12.1%
|
+41.3%
|
| Market Cap |
$336.0B |
$276.2B |
| Forward P/E |
23.0x
|
15.1x
|
| EV / EBITDA |
18.1x
|
14.3x
|
| Price / Sales |
2.3x
|
0.6x
|
| Price / FCF |
29.7x
|
17.2x
|
| Revenue Growth YoY |
+3.2%
|
+11.8%
|
| Gross Margin |
33.3%
|
18.5%
|
| Operating Margin |
12.7%
|
4.2%
|
| Return on Equity |
110.5%
|
12.7%
|
| Dividend Yield |
2.44% |
2.9% |
| FCF Yield |
3.37%
|
5.82%
|
| Analyst Consensus |
Buy
|
Buy
|
Investment Thesis
Home Depot remains the world's largest home improvement retailer with 2,350+ stores, dominant 52% market share, and a rapidly growing Pro contractor segment bolstered by the SRS Distribution acquisition. The stock has declined 21% from its $427 high to $337, but now trades at 2.28x P/S, near the 5-year median of 2.31x, and 26.5x P/E which is above the 5-year median of 23.5x. EPS declined 4.6% in …
UnitedHealth Group is the world's largest diversified healthcare company, combining the dominant US health insurer UnitedHealthcare with the high-margin Optum services platform spanning care delivery, pharmacy benefits, and data analytics. The stock has fallen roughly 49% from its 2024 peak of $596, driven by elevated medical costs, DOJ antitrust scrutiny, CEO transitions (Brian Thompson's murder…
Accumulation Zones
| Metric |
HD |
UNH |
| Zone Low |
$285.00 |
$280.00 |
| Zone High |
$320.00 |
$340.00 |
| In Buy Zone? |
No
|
Yes
|