The Ensign Group, Inc. (ENSG) vs Tenet Healthcare Corporation (THC)

The Ensign Group, Inc. and Tenet Healthcare Corporation are both Medical Care Facilities companies. Tenet Healthcare Corporation is the larger, with a market value of $20.1B against $10.1B — 2.0× the size. Tenet Healthcare Corporation trades at the lower P/E: 9.9× against 26.7×. The Ensign Group, Inc. grew revenue faster over the last twelve months: 18.9% against 9.40%. Tenet Healthcare Corporation has the higher net margin (9.90% vs 6.90%) and the higher return on invested capital (16.1% vs 12.9%). Across the 22 metrics below, Tenet Healthcare Corporation leads on 17 and The Ensign Group, Inc. on 5.

Valuation

Metric ENSG THC Medical Care Facilities median
P/E 26.66 9.94 19.16
P/S 1.85 0.96 0.90
P/B 4.15 3.31 2.91
Price to free cash flow 24.23 7.18 12.62
EV/EBITDA 17.10 6.01 10.06
EV/Sales 1.82 1.45 1.35
Earnings yield 3.75% 10.06% 2.30%
Free cash flow yield 4.13% 13.94% 4.14%

Profitability

Metric ENSG THC Medical Care Facilities median
Gross margin 16.04% 43.82% 30.78%
Operating margin 8.52% 20.05% 5.74%
Net margin 6.90% 9.90% 2.32%
Free cash flow margin 7.64% 13.35% 5.46%
Return on equity 16.96% 37.25% 8.76%
Return on assets 7.09% 7.55% 2.18%
Return on invested capital 12.90% 16.09% 5.40%

Growth

Metric ENSG THC Medical Care Facilities median
Revenue growth (TTM) 18.89% 9.40% 7.12%
EPS growth (last fiscal year) 14.06% (52.63%) —
Revenue growth, 5-year CAGR 16.05% 3.85% 9.58%
Net income growth, 5-year CAGR 15.07% 28.67% 0.00%

Health

Metric ENSG THC Medical Care Facilities median
Debt to equity 0.06 2.02 0.30
Current ratio 1.21 1.41 1.22
Net debt to EBITDA (0.81) 2.34 1.32

Dividend

Metric ENSG THC Medical Care Facilities median
Dividend yield 0.20% — 0.85%
Payout ratio 0.05 0.00 0.00

Size

Metric ENSG THC Medical Care Facilities median
Market cap 10.10b 20.09b 1.34b

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