Stock Comparison

TERN vs UNH

Terns Pharmaceuticals Inc vs UnitedHealth Group Inc

Who's the better investment? Let's break it down.

The Verdict

UNH takes this one.

This one's close — only 0.2 points separating them. UNH wins by a hair, but both deserve a closer look.

TERN

Terns Pharmaceuticals Inc

0.1

out of 10

Distressed

Winner

UNH

UnitedHealth Group Inc

0.3

out of 10

Distressed

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Valuation

TERN

Metric

UNH

$6.1B

Market Cap

$365.5B

-51.4

P/E Ratio

Lower may indicate better value

30.3

N/A

Forward P/E

18.2

N/A

Price/Book

6.4

N/A

EV/EBITDA

16.8

Profitability & Growth

TERN

Metric

UNH

N/A

Profit Margin

2.7%

N/A

Gross Margin

18.5%

N/A

Operating Margin

4.1%

-20.0%

Return on Equity

12.4%

-19.4%

Return on Assets

3.9%

-100.0%

Revenue Growth

9.7%

$-1.03

EPS

$13.24

Financial Health

TERN

Metric

UNH

0.1

Debt-to-Equity

Lower = less leverage

0.8

62.4

Current Ratio

Above 1.0 is healthy

0.9

-0.4

Beta

Lower = less volatile

0.6

None

Dividend Yield

2.3%

Risk Comparison

TERN

Overall

Not Applicable

Financial

Not Applicable

Market

Not Applicable

Competitive

Not Applicable

Execution

Not Applicable

Regulatory

Not Applicable

What Could Go Wrong

For former shareholders, the only remaining 'risk' would have been if the Merck acquisition (announced in March 2026) had failed to close by May 5, 2026. However, the deal completed as planned, and Te...

Red Flags

🚩Company delisted on May 5, 2026.
🚩No longer trades publicly.
🚩All shareholder equity converted to cash at $53.00/share.

UNH

Overall

Moderate

Financial

Low

Market

Medium

Competitive

Low

Execution

Low

Regulatory

High

What Could Go Wrong

The ongoing DOJ criminal and civil investigation, if it leads to significant penalties, forced divestitures, or operational restrictions, could severely impact Optum's growth trajectory and UNH's over...

Red Flags

🚩DOJ criminal and civil investigation: Presents an unquantified but potentially significant regulator...
🚩Reported membership contracting by 1.3 million in 2026 (from secondary source): If verified in futur...
🚩Very low insider ownership (0.28%): While common for mega-caps, it suggests less direct alignment wi...

Competitive Moat

TERN

Rating

🛡️ None

Trend

➡️ Not Applicable

UNH

Rating

🛡️ Wide

Trend

➡️ Stable to Expanding

Efficient ScaleSwitching CostsIntangible Assets/IP (data, analytics, proprietary care models)Brand Power

Investment Thesis

TERN0.1/10

The investment thesis for Terns Pharmaceuticals as a high-risk, high-reward 10x growth opportunity is entirely negated. The company was acquired by Merck for $53.00 per share and subsequently delisted on May 5, 2026. All independent growth potential has been capitalized and transferred to Merck. Terns no longer represents a viable investment for public equity investors.

Full TERN Analysis

UNH0.3/10

If Optum continues to expand its health services and technology footprint at high-single-digit to low-double-digit rates, while UnitedHealthcare maintains stable profitability and manages its medical loss ratio, then UNH will deliver consistent EPS growth (high-single digits) and dividend increases. This makes UNH a reliable compounder for long-term capital appreciation and income, not a high-grow...

Full UNH Analysis

Price Targets & Strategy

Price Targets & Entry/Exit Strategy

Growth Catalysts

Growth Catalysts Comparison

Market Sentiment

Market Sentiment Analysis

The Deep Dive

TERN0.1/10

Score Change Explanation: The score has been maintained at an extremely low level (0/100, down from the previous 1/100) to reflect the definitive and irreversible change in Terns Pharmaceuticals' status. On May 5, 2026, Merck completed its acquisition of TERN for $53.00 per share, and the company has since been delisted from Nasdaq. This corporate action entirely eliminates TERN's independent existence as a public company and, consequently, any possibility of it generating 10x growth for public ...

Full TERN Analysis

UNH0.3/10

UnitedHealth Group (UNH) remains a robust, high-quality mega-cap in the mature and highly regulated healthcare sector. Q1 2026 adjusted EPS of $7.23, a recent dividend increase to $2.32, and some analyst upgrades (e.g., Truist to $440, Goldman Sachs Conviction Buy) reflect solid operational performance and financial strength. However, these are characteristics of a stable compounder, not a company capable of 10x growth within 3-5 years. Its immense scale, market maturity, and regulatory landscap...

Full UNH Analysis

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Not Financial Advice

This comparison is for educational purposes only. We are not financial advisors. Always do your own research and consult a qualified financial advisor before making investment decisions.