EHAB vs ACHC

For growth investors, Acadia Healthcare Company, Inc.

(ACHC) is the stronger pick with 5. 0% revenue growth year-over-year, versus 2. 4% for Enhabit, Inc. (EHAB). Analysts rate Acadia Healthcare Company, Inc. (ACHC) a "Buy" — based on 25 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.

Over the past 5 years, Enhabit, Inc.

(EHAB) delivered a total return of -44. 9%, compared to -61. 8% for Acadia Healthcare Company, Inc. (ACHC). Over 10 years, the gap is even starker: EHAB returned -44. 9% versus ACHC's -58. 5%. 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), Enhabit, Inc.

(EHAB) is the lower-risk stock at 0. 44β versus Acadia Healthcare Company, Inc. 's 0. 84β — meaning ACHC is approximately 90% more volatile than EHAB relative to the S&P 500. On balance sheet safety, Enhabit, Inc. (EHAB) carries a lower debt/equity ratio of 89% versus 124% for Acadia Healthcare Company, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Acadia Healthcare Company, Inc.

(ACHC) is pulling ahead at 5. 0% versus 2. 4% for Enhabit, Inc. (EHAB). On earnings-per-share growth, the picture is similar: Enhabit, Inc. grew EPS 97. 1% year-over-year, compared to -537. 4% for Acadia Healthcare Company, Inc.. Over a 3-year CAGR, ACHC leads at 8. 3% 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.

Enhabit, Inc.

(EHAB) is the more profitable company, earning -0. 4% net margin versus -33. 3% for Acadia Healthcare Company, Inc. — meaning it keeps -0. 4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ACHC leads at 11. 7% versus 6. 0% for EHAB. At the gross margin level — before operating expenses — EHAB leads at 46. 9%, 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.

On forward earnings alone, Acadia Healthcare Company, Inc.

(ACHC) trades at 16. 4x forward P/E versus 22. 8x for Enhabit, Inc. — 6. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for EHAB: -1. 8% to $13. 53.

None of the stocks in this comparison currently pay a material dividend.

All are effectively zero-yield and should be held for capital appreciation rather than income.

For long-horizon retirement investors, Enhabit, Inc.

(EHAB) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 44)). Both have compounded well over 10 years (EHAB: -44. 9%, ACHC: -58. 5%), 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.

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.