Encompass Health Corporation (EHC) vs Universal Health Services, Inc. (UHS)

Encompass Health Corporation and Universal Health Services, Inc. are both Medical Care Facilities companies. Encompass Health Corporation is the larger, with a market value of $12.0B against $10.5B — 1.1× the size. Universal Health Services, Inc. trades at the lower P/E: 7.2× against 19.9×. Universal Health Services, Inc. grew revenue faster over the last twelve months: 10.1% against 9.47%. Encompass Health Corporation has the higher net margin (10.0% vs 8.42%) and the higher return on invested capital (11.8% vs 10.5%). Both pay a dividend; Encompass Health Corporation yields more (0.82% vs 0.49%). Across the 23 metrics below, Universal Health Services, Inc. leads on 13 and Encompass Health Corporation on 10.

Valuation

Metric EHC UHS Medical Care Facilities median
P/E 19.85 7.20 19.16
P/S 1.97 0.59 0.90
P/B 3.58 1.41 2.91
Price to free cash flow 31.78 12.62 12.62
EV/EBITDA 10.00 5.70 10.06
EV/Sales 2.37 0.85 1.35
Earnings yield 5.04% 13.88% 2.30%
Free cash flow yield 3.15% 7.92% 4.14%

Profitability

Metric EHC UHS Medical Care Facilities median
Gross margin 100.00% 90.69% 30.78%
Operating margin 17.94% 11.36% 5.74%
Net margin 10.01% 8.42% 2.32%
Free cash flow margin 6.66% 4.67% 5.46%
Return on equity 19.30% 20.81% 8.76%
Return on assets 8.72% 9.87% 2.18%
Return on invested capital 11.79% 10.46% 5.40%

Growth

Metric EHC UHS Medical Care Facilities median
Revenue growth (TTM) 9.47% 10.05% 7.12%
EPS growth (last fiscal year) 24.22% 37.34% —
Revenue growth, 5-year CAGR 10.72% 8.48% 9.58%
Net income growth, 5-year CAGR 14.78% 9.61% 0.00%

Health

Metric EHC UHS Medical Care Facilities median
Debt to equity 0.77 0.64 0.30
Current ratio 1.19 1.12 1.22
Net debt to EBITDA 1.72 1.77 1.32

Dividend

Metric EHC UHS Medical Care Facilities median
Dividend yield 0.82% 0.49% 0.85%
Payout ratio 0.17 0.08 0.00

Size

Metric EHC UHS Medical Care Facilities median
Market cap 12.04b 10.53b 1.34b

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