EHC vs ENSG

For growth investors, The Ensign Group, Inc.

(ENSG) is the stronger pick with 18. 7% revenue growth year-over-year, versus 10. 5% for Encompass Health Corporation (EHC). Encompass Health Corporation (EHC) offers the better valuation at 19. 3x trailing P/E (18. 1x forward), making it the more compelling value choice. Analysts rate Encompass Health Corporation (EHC) a "Buy" — based on 26 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Encompass Health Corporation (EHC) is the cheapest at 19.

3x versus The Ensign Group, Inc. at 29. 8x. On forward P/E, Encompass Health Corporation is actually cheaper at 18. 1x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Encompass Health Corporation wins at 1. 27x versus The Ensign Group, Inc. 's 1. 68x — a reasonable growth-adjusted valuation.

Over the past 5 years, The Ensign Group, Inc.

(ENSG) delivered a total return of +103. 2%, compared to +63. 3% for Encompass Health Corporation (EHC). Over 10 years, the gap is even starker: ENSG returned +752. 0% versus EHC's +252. 2%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Encompass Health Corporation (EHC) is the lower-risk stock at 0.

40β versus The Ensign Group, Inc. 's 0. 42β — meaning ENSG is approximately 4% more volatile than EHC relative to the S&P 500. On balance sheet safety, Encompass Health Corporation (EHC) carries a lower debt/equity ratio of 83% versus 186% for The Ensign Group, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), The Ensign Group, Inc.

(ENSG) is pulling ahead at 18. 7% versus 10. 5% for Encompass Health Corporation (EHC). On earnings-per-share growth, the picture is similar: Encompass Health Corporation grew EPS 24. 2% year-over-year, compared to 14. 1% for The Ensign Group, Inc.. Over a 3-year CAGR, ENSG leads at 18. 7% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Encompass Health Corporation (EHC) is the more profitable company, earning 9.

5% net margin versus 6. 8% for The Ensign Group, Inc. — meaning it keeps 9. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: EHC leads at 17. 7% versus 8. 6% for ENSG. At the gross margin level — before operating expenses — EHC leads at 95. 7%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Encompass Health Corporation (EHC) is the more undervalued stock at a PEG of 1. 27x versus The Ensign Group, Inc. 's 1. 68x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, Encompass Health Corporation (EHC) trades at 18. 1x forward P/E versus 23. 2x for The Ensign Group, Inc. — 5. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for EHC: 42. 8% to $153. 00.

All stocks in this comparison pay dividends.

Encompass Health Corporation (EHC) offers the highest yield at 0. 6%, versus 0. 1% for The Ensign Group, Inc. (ENSG).

For long-horizon retirement investors, Encompass Health Corporation (EHC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

40), 0. 6% yield, +252. 2% 10Y return). Both have compounded well over 10 years (EHC: +252. 2%, ENSG: +752. 0%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Healthcare sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: EHC is a mid-cap quality compounder stock; ENSG is a mid-cap high-growth stock. EHC pays a dividend while ENSG does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.