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 2026-07-17.
The Home Depot, Inc. · Consumer Cyclical
$343.30
+34.6% upside to fair value
Grade A
High Quality
VS
UnitedHealth Group Incorporated · Healthcare
$423.38
+45.0% upside to fair value
Grade B
High Quality
QuantHub Verdict
UNH has more upside to fair value
(+45.0%).
HD trades at a lower forward P/E
(24.3x).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
HD |
UNH |
| Current Price |
$343.30 |
$423.38 |
| Fair Value Estimate |
$462.14 |
$613.90 |
| Upside to Fair Value |
+34.6%
|
+45.0%
|
| Market Cap |
$342.3B |
$384.5B |
| Forward P/E |
24.3x
|
27.2x
|
| EV / EBITDA |
16.5x
|
13.8x
|
| Price / Sales |
2.0x
|
0.8x
|
| Price / FCF |
23.9x
|
19.6x
|
| Revenue Growth YoY |
+4.8%
|
+0.4%
|
| Gross Margin |
33.1%
|
18.8%
|
| Operating Margin |
12.4%
|
4.2%
|
| Return on Equity |
113.3%
|
12.4%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
4.18%
|
5.12%
|
| Analyst Consensus |
Buy
|
Strong Buy
|
Investment Thesis
The Home Depot, Inc. operates as a leading home improvement retailer in the consumer cyclical sector, leveraging a strong brand and cost advantages to maintain a durable competitive moat. Despite a modest revenue growth of 4.8% and a decline in earnings by 4.2% in the most recent quarter, the company exhibits exceptional profitability metrics including a 113.3% return on equity and solid margins …
UnitedHealth Group Incorporated operates in the healthcare sector, specifically within medical and healthcare plans, providing a durable business model supported by a strong competitive moat and consistent earnings growth. The company currently trades at a price of $423.38 with a market cap of $359.873 billion, reflecting a valuation that is cheap relative to its five-year history, supported by a…
Accumulation Zones
| Metric |
HD |
UNH |
| Zone Low |
$346.61 |
$460.42 |
| Zone High |
$392.82 |
$521.81 |
| In Buy Zone? |
Yes
|
Yes
|