Better Growth Stock: UnitedHealth Group vs. Johnson & Johnson

UnitedHealth Group (NYSE: UNH) and Johnson Johnson (NYSE: JNJ) are two of the largest healthcare companies in the world. One is focused on health insurance, while the other makes medical devices and pharmaceuticals. They both pay dividends and have generated good returns for investors over the years. But which one is the best option for growth-oriented investors today?

A health insurance company may not attract many growth investors, as that type of business isn't typically associated with high growth. And I suspect that's a key reason why the stock is fairly undervalued today, trading at only 18 times its estimated future profits. The S 500, by comparison, averages a multiple of 21.

UnitedHealth is more than just a health insurance company, however. Over the years, it has been expanding into analytics, home health, and other services. The company was even using deep learning and artificial intelligence years before it was a popular trend, to help improve workflows in Optum, its health services business.

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Source Fool.com