HON vs UNH: Which Is the Better Buy?

Side-by-side comparison of Honeywell International Inc. and UnitedHealth Group Incorporated β€” fair value, conviction, valuation metrics, and QuantHub research signals. Updated 2026-07-17.
Honeywell International Inc. Β· Industrials
$222.25
-5.5% upside to fair value
Grade D High Quality
VS
UnitedHealth Group Incorporated Β· Healthcare
$423.38
+45.0% upside to fair value
Grade B High Quality
QuantHub Verdict
UNH has more upside to fair value (+45.0%). HON trades at a lower forward P/E (15.7x). These are model outputs β€” not personalized investment advice. See all research β†’
Valuation & Fundamentals
Metric HON UNH
Current Price $222.25 $423.38
Fair Value Estimate $210.05 $613.90
Upside to Fair Value -5.5% +45.0%
Market Cap $70.4B $384.5B
Forward P/E 15.7x 27.2x
EV / EBITDA 13.1x 13.8x
Price / Sales 1.9x 0.8x
Price / FCF 17.1x 19.6x
Revenue Growth YoY -6.9% +0.4%
Gross Margin 36.9% 18.8%
Operating Margin 14.9% 4.2%
Return on Equity 23.6% 12.4%
Dividend Yield 0% 0%
FCF Yield 5.84% 5.12%
Analyst Consensus Strong Buy Strong Buy
Investment Thesis
HON β€” Honeywell International Inc.
Honeywell International Inc. operates as a diversified industrial conglomerate with a strong presence in multiple sectors including aerospace, building technologies, and performance materials. The company demonstrates high business quality with a durable competitive moat supported by strong margins, a 23.6% return on equity, and solid free cash flow generation of $16.78 per share. However, recent…
UNH β€” UnitedHealth Group Incorporated
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 HON UNH
Zone Low $157.54 $460.42
Zone High $178.54 $521.81
In Buy Zone? No Yes
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