Aetna Inc. (AET), UnitedHealth Group Inc. (UNH): Time to Scoop Up This Health Care Company

Evidence of UnitedHealth’s advantage is most clearly seen in its revenue growth over the last five years. Although it is already much larger than Aetna Inc. (NYSE:AET) and WellPoint, Inc. (NYSE:WLP) — which, in most industries, would suggest slower potential growth — UnitedHealth Group Inc. (NYSE:UNH) has managed to grow its revenue at a higher rate due to a combination of a network effect and greater resources for acquisitions.

Bottom line

Investors should choose companies that are both cheap and have bright prospects. WellPoint is cheap, but its prospects are uncertain. Aetna Inc. (NYSE:AET) is also cheap, but it is more expensive than UnitedHealth. UnitedHealth is not only cheap, but it is the best-positioned company in its industry. As a result, it is time for investors to add UnitedHealth Group Inc. (NYSE:UNH) to their portfolios.

Ted Cooper has no position in any stocks mentioned. The Motley Fool recommends UnitedHealth Group Inc. (NYSE:UNH) and WellPoint, Inc. (NYSE:WLP). The Motley Fool owns shares of WellPoint.

The article Time to Scoop Up This Health Care Company originally appeared on Fool.com.

Ted is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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