Encompass Health Corporation (EHC) vs LifeStance Health Group, Inc. (LFST)

Encompass Health Corporation and LifeStance Health Group, Inc. are both Medical Care Facilities companies. Encompass Health Corporation is the larger, with a market value of $12.0B against $4.5B — 2.7× the size. Encompass Health Corporation trades at the lower P/E: 19.9× against 89.0×. LifeStance Health Group, Inc. grew revenue faster over the last twelve months: 20.4% against 9.47%. Encompass Health Corporation has the higher net margin (10.0% vs 3.19%) and the higher return on invested capital (11.8% vs 3.25%). Across the 22 metrics below, Encompass Health Corporation leads on 12 and LifeStance Health Group, Inc. on 10.

Valuation

Metric EHC LFST Medical Care Facilities median
P/E 19.85 89.02 19.16
P/S 1.97 2.87 0.90
P/B 3.58 3.07 2.91
Price to free cash flow 31.78 26.11 12.62
EV/EBITDA 10.00 34.13 10.06
EV/Sales 2.37 2.89 1.35
Earnings yield 5.04% 1.12% 2.30%
Free cash flow yield 3.15% 3.83% 4.14%

Profitability

Metric EHC LFST Medical Care Facilities median
Gross margin 100.00% 33.56% 30.78%
Operating margin 17.94% 4.95% 5.74%
Net margin 10.01% 3.19% 2.32%
Free cash flow margin 6.66% 10.97% 5.46%
Return on equity 19.30% 3.43% 8.76%
Return on assets 8.72% 2.34% 2.18%
Return on invested capital 11.79% 3.25% 5.40%

Growth

Metric EHC LFST Medical Care Facilities median
Revenue growth (TTM) 9.47% 20.38% 7.12%
EPS growth (last fiscal year) 24.22% 113.33% —
Revenue growth, 5-year CAGR 10.72% 30.44% 9.58%
Net income growth, 5-year CAGR 14.78% 0.00% 0.00%

Health

Metric EHC LFST Medical Care Facilities median
Debt to equity 0.77 0.18 0.30
Current ratio 1.19 1.38 1.22
Net debt to EBITDA 1.72 0.22 1.32

Dividend

Metric EHC LFST Medical Care Facilities median
Dividend yield 0.82% — 0.85%
Payout ratio 0.17 0.00 0.00

Size

Metric EHC LFST Medical Care Facilities median
Market cap 12.04b 4.51b 1.34b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack