ENSG vs NHC

For growth investors, The Ensign Group, Inc.

(ENSG) is the stronger pick with 18. 7% revenue growth year-over-year, versus 13. 2% for National HealthCare Corporation (NHC). National HealthCare Corporation (NHC) offers the better valuation at 22. 1x trailing P/E (21. 3x forward), making it the more compelling value choice. Analysts rate The Ensign Group, Inc. (ENSG) a "Buy" — based on 13 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, National HealthCare Corporation (NHC) is the cheapest at 22.

1x versus The Ensign Group, Inc. at 30. 1x. On forward P/E, National HealthCare Corporation is actually cheaper at 21. 3x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: National HealthCare Corporation wins at 0. 92x versus The Ensign Group, Inc. 's 1. 70x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, National HealthCare Corporation (NHC) delivered a total return of +152.

9%, compared to +107. 7% for The Ensign Group, Inc. (ENSG). Over 10 years, the gap is even starker: ENSG returned +768. 3% versus NHC's +195. 8%. 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), The Ensign Group, Inc.

(ENSG) is the lower-risk stock at 0. 42β versus National HealthCare Corporation's 0. 60β — meaning NHC is approximately 41% more volatile than ENSG relative to the S&P 500. On balance sheet safety, National HealthCare Corporation (NHC) carries a lower debt/equity ratio of 8% 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 13. 2% for National HealthCare Corporation (NHC). On earnings-per-share growth, the picture is similar: National HealthCare Corporation grew EPS 17. 5% 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.

National HealthCare Corporation (NHC) is the more profitable company, earning 8.

2% net margin versus 6. 8% for The Ensign Group, Inc. — meaning it keeps 8. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: NHC leads at 8. 7% versus 8. 6% for ENSG. At the gross margin level — before operating expenses — NHC leads at 37. 3%, 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, National HealthCare Corporation (NHC) is the more undervalued stock at a PEG of 0. 92x versus The Ensign Group, Inc. 's 1. 70x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, National HealthCare Corporation (NHC) trades at 21. 3x forward P/E versus 23. 4x for The Ensign Group, Inc. — 2. 1x cheaper on a one-year earnings basis.

All stocks in this comparison pay dividends.

National HealthCare Corporation (NHC) offers the highest yield at 1. 5%, versus 0. 1% for The Ensign Group, Inc. (ENSG).

For long-horizon retirement investors, The Ensign Group, Inc.

(ENSG) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 42), +768. 3% 10Y return). Both have compounded well over 10 years (ENSG: +768. 3%, NHC: +195. 8%), 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: ENSG is a mid-cap high-growth stock; NHC is a small-cap quality compounder stock. NHC 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.