Encompass Health Corporation (EHC) vs HCA Healthcare, Inc. (HCA)

Encompass Health Corporation and HCA Healthcare, Inc. are both Medical Care Facilities companies. HCA Healthcare, Inc. is the larger, with a market value of $101.4B against $12.6B — 8.0× the size. HCA Healthcare, Inc. trades at the lower P/E: 15.3× against 20.6×. Encompass Health Corporation grew revenue faster over the last twelve months: 9.47% against 7.31%. Encompass Health Corporation has the higher net margin (10.0% vs 8.77%) and the lower return on invested capital (11.8% vs 16.7%). Both pay a dividend; HCA Healthcare, Inc. yields more (0.67% vs 0.61%). Across the 22 metrics below, HCA Healthcare, Inc. leads on 13 and Encompass Health Corporation on 9.

Valuation

Metric EHC HCA Medical Care Facilities median
P/E 20.56 15.32 20.56
P/S 2.04 1.29 0.85
P/B 3.71 n/m 2.84
Price to free cash flow 32.92 16.83 13.73
EV/EBITDA 10.30 9.44 10.21
EV/Sales 2.44 1.92 1.32
Earnings yield 4.86% 6.53% 2.25%
Free cash flow yield 3.04% 5.94% 4.16%

Profitability

Metric EHC HCA Medical Care Facilities median
Gross margin 100.00% 85.26% 30.78%
Operating margin 17.94% 15.56% 5.74%
Net margin 10.01% 8.77% 2.32%
Free cash flow margin 6.66% 7.69% 5.46%
Return on equity 19.30% (307.62%) 8.76%
Return on assets 8.72% 11.14% 2.18%
Return on invested capital 11.79% 16.68% 5.01%

Growth

Metric EHC HCA Medical Care Facilities median
Revenue growth (TTM) 9.47% 7.31% 7.12%
EPS growth (last fiscal year) 24.22% 28.77% 17.46%
Revenue growth, 5-year CAGR 10.72% 7.97% 9.58%
Net income growth, 5-year CAGR 14.78% 12.56% 0.00%

Health

Metric EHC HCA Medical Care Facilities median
Debt to equity 0.77 (15.49) 0.37
Current ratio 1.19 0.99 1.20
Net debt to EBITDA 1.72 2.91 1.07

Dividend

Metric EHC HCA Medical Care Facilities median
Dividend yield 0.61% 0.67% 0.63%
Payout ratio 0.13 0.10 0.13

Size

Metric EHC HCA Medical Care Facilities median
Market cap 12.60b 101.43b 1.47b

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