UnitedHealth Group (NYSE:UNH) versus First China Pharmaceutical Group (OTCMKTS:FCPG) Critical Analysis

UnitedHealth Group (NYSE:UNH) and First China Pharmaceutical Group (OTCMKTS:FCPG) are both healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, institutional ownership, earnings, valuation, risk and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings for UnitedHealth Group and First China Pharmaceutical Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UnitedHealth Group	0	5	20	2	2.89
First China Pharmaceutical Group	0	0	0	0	0.00

UnitedHealth Group presently has a consensus price target of $455.92, indicating a potential upside of 12.27%. Given UnitedHealth Group’s stronger consensus rating and higher probable upside, research analysts clearly believe UnitedHealth Group is more favorable than First China Pharmaceutical Group.

Insider & Institutional Ownership

87.9% of UnitedHealth Group shares are held by institutional investors. 0.2% of UnitedHealth Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares UnitedHealth Group and First China Pharmaceutical Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UnitedHealth Group	$447.57 billion	0.82	$12.06 billion	$15.54	26.13
First China Pharmaceutical Group	N/A	N/A	N/A	N/A	N/A

UnitedHealth Group has higher revenue and earnings than First China Pharmaceutical Group.

Profitability

This table compares UnitedHealth Group and First China Pharmaceutical Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
UnitedHealth Group	3.14%	16.53%	5.43%
First China Pharmaceutical Group	N/A	N/A	N/A

Summary

UnitedHealth Group beats First China Pharmaceutical Group on 10 of the 10 factors compared between the two stocks.

About UnitedHealth Group

UnitedHealth Group Incorporated operates as a diversified health care company in the United States. The company operates through four segments: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx. The UnitedHealthcare segment offers consumer-oriented health benefit plans and services for national employers, public sector employers, mid-sized employers, small businesses, and individuals; health care coverage, and health and well-being services to individuals age 50 and older addressing their needs; Medicaid plans, children's health insurance and health care programs; and health and dental benefits, and hospital and clinical services, as well as health care benefits products and services to state programs caring for the economically disadvantaged, medically underserved, and those without the benefit of employer-funded health care coverage. The Optum Health segment provides care delivery, care management, wellness and consumer engagement, and health financial services patients, consumers, care delivery systems, providers, employers, payers, and public-sector entities. The Optum Insight segment offers software and information products, advisory consulting arrangements, and managed services outsourcing contracts to hospital systems, physicians, health plans, governments, life sciences companies, and other organizations. The Optum Rx segment provides pharmacy care services and programs, including retail network contracting, home delivery, specialty and community health pharmacy services, infusion, and purchasing and clinical capabilities, as well as develops programs in the areas of step therapy, formulary management, drug adherence, and disease/drug therapy management. UnitedHealth Group Incorporated was founded in 1974 and is based in Minnetonka, Minnesota.

About First China Pharmaceutical Group

First China Pharmaceutical Group, Inc. operates through its wholly owned subsidiary Kun Ming Xin Yuan Tang Pharmacies Co. Ltd. (XYT) is engaged in drug logistics and distribution in Yunnan Province, China through drug stores, medical clinics and hospitals. XYT is a provincial pharmaceutical distributor that offers approximately 5,000 drugs, of which approximately 1,000 are over-the-counter drugs, approximately 1,000 are prescription drugs, approximately 2,000 are prepared Chinese medicines and approximately 1,000 are supplements. The Company’s short term objective is to broaden its product line from 5,000 products to 30,000 and include significantly more Western medicines as well as traditional Chinese drugs and herbs. By expanding its product line six-fold and offering products at a lower price than major competitors, the Company expects to be able to become its customers’ primary distributor, supplying more than 80% of the pharmaceutical products they require.