The Ensign Group, Inc. (ENSG) vs Universal Health Services, Inc. (UHS)

The Ensign Group, Inc. and Universal Health Services, Inc. are both Medical Care Facilities companies. The Ensign Group, Inc. and Universal Health Services, Inc. are of similar size ($10.5B and $10.1B). Universal Health Services, Inc. trades at the lower P/E: 7.2× against 26.7×. The Ensign Group, Inc. grew revenue faster over the last twelve months: 18.9% against 10.1%. Universal Health Services, Inc. has the higher net margin (8.42% vs 6.90%) and the lower return on invested capital (10.5% vs 12.9%). Both pay a dividend; Universal Health Services, Inc. yields more (0.49% vs 0.20%). Across the 23 metrics below, Universal Health Services, Inc. leads on 15 and The Ensign Group, Inc. on 8.

Valuation

Metric ENSG UHS Medical Care Facilities median
P/E 26.66 7.20 19.16
P/S 1.85 0.59 0.90
P/B 4.15 1.41 2.91
Price to free cash flow 24.23 12.62 12.62
EV/EBITDA 17.10 5.70 10.06
EV/Sales 1.82 0.85 1.35
Earnings yield 3.75% 13.88% 2.30%
Free cash flow yield 4.13% 7.92% 4.14%

Profitability

Metric ENSG UHS Medical Care Facilities median
Gross margin 16.04% 90.69% 30.78%
Operating margin 8.52% 11.36% 5.74%
Net margin 6.90% 8.42% 2.32%
Free cash flow margin 7.64% 4.67% 5.46%
Return on equity 16.96% 20.81% 8.76%
Return on assets 7.09% 9.87% 2.18%
Return on invested capital 12.90% 10.46% 5.40%

Growth

Metric ENSG UHS Medical Care Facilities median
Revenue growth (TTM) 18.89% 10.05% 7.12%
EPS growth (last fiscal year) 14.06% 37.34% —
Revenue growth, 5-year CAGR 16.05% 8.48% 9.58%
Net income growth, 5-year CAGR 15.07% 9.61% 0.00%

Health

Metric ENSG UHS Medical Care Facilities median
Debt to equity 0.06 0.64 0.30
Current ratio 1.21 1.12 1.22
Net debt to EBITDA (0.81) 1.77 1.32

Dividend

Metric ENSG UHS Medical Care Facilities median
Dividend yield 0.20% 0.49% 0.85%
Payout ratio 0.05 0.08 0.00

Size

Metric ENSG UHS Medical Care Facilities median
Market cap 10.10b 10.53b 1.34b

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