EHAB vs UNH

For growth investors, UnitedHealth Group Incorporated (UNH) is the stronger pick with 11.

8% revenue growth year-over-year, versus 2. 4% for Enhabit, Inc. (EHAB). UnitedHealth Group Incorporated (UNH) offers the better valuation at 27. 9x trailing P/E (20. 2x forward), making it the more compelling value choice. Analysts rate UnitedHealth Group Incorporated (UNH) a "Buy" — based on 52 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 forward P/E, UnitedHealth Group Incorporated is actually cheaper at 20.

2x.

Over the past 5 years, UnitedHealth Group Incorporated (UNH) delivered a total return of -2.

6%, compared to -44. 9% for Enhabit, Inc. (EHAB). Over 10 years, the gap is even starker: UNH returned +220. 6% versus EHAB's -44. 9%. 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 UnitedHealth Group Incorporated's 0. 59β — meaning UNH is approximately 32% more volatile than EHAB relative to the S&P 500. On balance sheet safety, UnitedHealth Group Incorporated (UNH) carries a lower debt/equity ratio of 77% versus 89% for Enhabit, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), UnitedHealth Group Incorporated (UNH) is pulling ahead at 11.

8% 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 -14. 7% for UnitedHealth Group Incorporated. Over a 3-year CAGR, UNH leads at 11. 4% 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.

UnitedHealth Group Incorporated (UNH) is the more profitable company, earning 2.

7% net margin versus -0. 4% for Enhabit, Inc. — meaning it keeps 2. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: EHAB leads at 6. 0% versus 4. 2% for UNH. 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, UnitedHealth Group Incorporated (UNH) trades at 20.

2x forward P/E versus 22. 8x for Enhabit, Inc. — 2. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for UNH: 4. 2% to $385. 43.

In this comparison, UNH (2.

4% yield) pays a dividend. EHAB does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, UnitedHealth Group Incorporated (UNH) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

59), 2. 4% yield, +220. 6% 10Y return). Both have compounded well over 10 years (UNH: +220. 6%, EHAB: -44. 9%), 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.

UNH pays a dividend while EHAB 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.