Chemed Corporation (CHE) vs Encompass Health Corporation (EHC)

Chemed Corporation and Encompass Health Corporation are both Medical Care Facilities companies. Encompass Health Corporation is the larger, with a market value of $12.0B against $6.5B — 1.8× the size. Encompass Health Corporation trades at the lower P/E: 19.9× against 25.7×. Encompass Health Corporation grew revenue faster over the last twelve months: 9.47% against 3.31%. Chemed Corporation has the higher net margin (10.6% vs 10.0%) and the higher return on invested capital (23.5% vs 11.8%). Both pay a dividend; Encompass Health Corporation yields more (0.82% vs 0.26%). Across the 23 metrics below, Encompass Health Corporation leads on 14 and Chemed Corporation on 9.

Valuation

Metric CHE EHC Medical Care Facilities median
P/E 25.70 19.85 19.16
P/S 2.60 1.97 0.90
P/B 8.12 3.58 2.91
Price to free cash flow 20.56 31.78 12.62
EV/EBITDA 16.59 10.00 10.06
EV/Sales 2.66 2.37 1.35
Earnings yield 3.89% 5.04% 2.30%
Free cash flow yield 4.86% 3.15% 4.14%

Profitability

Metric CHE EHC Medical Care Facilities median
Gross margin 33.11% 100.00% 30.78%
Operating margin 13.46% 17.94% 5.74%
Net margin 10.60% 10.01% 2.32%
Free cash flow margin 12.64% 6.66% 5.46%
Return on equity 27.11% 19.30% 8.76%
Return on assets 16.68% 8.72% 2.18%
Return on invested capital 23.46% 11.79% 5.40%

Growth

Metric CHE EHC Medical Care Facilities median
Revenue growth (TTM) 3.31% 9.47% 7.12%
EPS growth (last fiscal year) (7.79%) 24.22% —
Revenue growth, 5-year CAGR 4.00% 10.72% 9.58%
Net income growth, 5-year CAGR (3.65%) 14.78% 0.00%

Health

Metric CHE EHC Medical Care Facilities median
Debt to equity 0.17 0.77 0.30
Current ratio 0.91 1.19 1.22
Net debt to EBITDA (0.18) 1.72 1.32

Dividend

Metric CHE EHC Medical Care Facilities median
Dividend yield 0.26% 0.82% 0.85%
Payout ratio 0.10 0.17 0.00

Size

Metric CHE EHC Medical Care Facilities median
Market cap 6.54b 12.04b 1.34b

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