Encompass Health Corporation (EHC) vs PACS Group, Inc. (PACS)

Encompass Health Corporation and PACS Group, Inc. are both Medical Care Facilities companies. Encompass Health Corporation is the larger, with a market value of $12.0B against $6.6B — 1.8× the size. Encompass Health Corporation trades at the lower P/E: 19.9× against 24.3×. PACS Group, Inc. grew revenue faster over the last twelve months: 15.2% against 9.47%. Encompass Health Corporation has the higher net margin (10.0% vs 4.85%) and the lower return on invested capital (11.8% vs 21.4%). Across the 20 metrics below, PACS Group, Inc. leads on 11 and Encompass Health Corporation on 9.

Valuation

Metric EHC PACS Medical Care Facilities median
P/E 19.85 24.29 19.16
P/S 1.97 1.18 0.90
P/B 3.58 5.85 2.91
Price to free cash flow 31.78 14.30 12.62
EV/EBITDA 10.00 13.73 10.06
EV/Sales 2.37 1.19 1.35
Earnings yield 5.04% 4.12% 2.30%
Free cash flow yield 3.15% 6.99% 4.14%

Profitability

Metric EHC PACS Medical Care Facilities median
Gross margin 100.00% 16.59% 30.78%
Operating margin 17.94% 7.39% 5.74%
Net margin 10.01% 4.85% 2.32%
Free cash flow margin 6.66% 8.22% 5.46%
Return on equity 19.30% 27.92% 8.76%
Return on assets 8.72% 4.82% 2.18%
Return on invested capital 11.79% 21.42% 5.40%

Growth

Metric EHC PACS Medical Care Facilities median
Revenue growth (TTM) 9.47% 15.15% 7.12%
EPS growth (last fiscal year) 24.22% 221.05% —
Revenue growth, 5-year CAGR 10.72% — 9.58%
Net income growth, 5-year CAGR 14.78% — 0.00%

Health

Metric EHC PACS Medical Care Facilities median
Debt to equity 0.77 0.22 0.30
Current ratio 1.19 0.91 1.22
Net debt to EBITDA 1.72 0.41 1.32

Dividend

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

Size

Metric EHC PACS Medical Care Facilities median
Market cap 12.04b 6.56b 1.34b

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