Comprehensive Stock Comparison
Compare Encompass Health Corporation (EHC) vs Apple Inc. (AAPL) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | EHC | 10.5% revenue growth vs AAPL's 6.4% |
| Value | EHC | Lower P/E (18.2x vs 31.1x), PEG 1.28 vs 1.74 |
| Quality / Margins | AAPL | 27.0% net margin vs EHC's 9.3% |
| Stability / Safety | EHC | Beta 0.49 vs AAPL's 1.28, lower leverage |
| Dividends | EHC | 0.6% yield, 2-year raise streak, vs AAPL's 0.4% |
| Momentum (1Y) | AAPL | +9.7% vs EHC's +8.4% |
| Efficiency (ROA) | AAPL | 31.1% ROA vs EHC's 7.9%, ROIC 64.5% vs 12.7% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Encompass Health operates a network of inpatient rehabilitation hospitals and home health/hospice services across the United States. It generates revenue primarily from Medicare reimbursements for its inpatient rehabilitation services — which account for the majority of its business — supplemented by home health and hospice care payments. The company's competitive advantage lies in its scale as the largest owner and operator of inpatient rehabilitation facilities in the country, creating operational efficiencies and referral network advantages.
Apple is a technology giant that designs and sells premium consumer electronics — most famously the iPhone — along with related software and services. It generates revenue primarily from hardware sales (roughly 80% of total) and a fast-growing services segment (around 20%) that includes the App Store, subscriptions, and licensing. Its key competitive advantage is a powerful ecosystem that locks users into its hardware, software, and services through seamless integration and high switching costs.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
AAPL leads in 2 of 6 categories (Financial Metrics, Profitability & Efficiency). EHC leads in 1 (Valuation Metrics). 3 tied.
Financial Metrics (TTM)
AAPL is the larger business by revenue, generating $435.6B annually — 75.2x EHC's $5.8B. AAPL is the more profitable business, keeping 27.0% of every revenue dollar as net income compared to EHC's 9.3%. On growth, AAPL holds the edge at +15.7% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | EHCEncompass Health … | AAPLApple Inc. |
|---|---|---|
| RevenueTrailing 12 months | $5.8B | $435.6B |
| EBITDAEarnings before interest/tax | $1.3B | $152.9B |
| Net IncomeAfter-tax profit | $541M | $117.8B |
| Free Cash FlowCash after capex | $403M | $123.3B |
| Gross MarginGross profit ÷ Revenue | +43.8% | +47.3% |
| Operating MarginEBIT ÷ Revenue | +17.3% | +32.4% |
| Net MarginNet income ÷ Revenue | +9.3% | +27.0% |
| FCF MarginFCF ÷ Revenue | +6.9% | +28.3% |
| Rev. Growth (YoY)Latest quarter vs prior year | +9.4% | +15.7% |
| EPS Growth (YoY)Latest quarter vs prior year | +17.0% | +18.3% |
Valuation Metrics
At 19.4x trailing earnings, EHC trades at a 45% valuation discount to AAPL's 35.4x P/E. Adjusting for growth (PEG ratio), EHC offers better value at 1.36x vs AAPL's 1.98x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | EHCEncompass Health … | AAPLApple Inc. |
|---|---|---|
| Market CapShares × price | $10.8B | $3.88T |
| Enterprise ValueMkt cap + debt − cash | $11.0B | $3.97T |
| Trailing P/EPrice ÷ TTM EPS | 19.44x | 35.41x |
| Forward P/EPrice ÷ next-FY EPS est. | 18.22x | 31.15x |
| PEG RatioP/E ÷ EPS growth rate | 1.36x | 1.98x |
| EV / EBITDAEnterprise value multiple | 10.09x | 27.45x |
| Price / SalesMarket cap ÷ Revenue | 1.82x | 9.33x |
| Price / BookPrice ÷ Book value/share | 3.37x | 53.76x |
| Price / FCFMarket cap ÷ FCF | — | 39.33x |
Profitability & Efficiency
AAPL delivers a 133.5% return on equity — every $100 of shareholder capital generates $134 in annual profit, vs $17 for EHC. EHC carries lower financial leverage with a 0.08x debt-to-equity ratio, signaling a more conservative balance sheet compared to AAPL's 1.67x.
| Metric | EHCEncompass Health … | AAPLApple Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +17.0% | +133.5% |
| ROA (TTM)Return on assets | +7.9% | +31.1% |
| ROICReturn on invested capital | +12.7% | +64.5% |
| ROCEReturn on capital employed | +12.7% | +69.6% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 7 |
| Debt / EquityFinancial leverage | 0.08x | 1.67x |
| Net DebtTotal debt minus cash | $195M | $89.7B |
| Cash & Equiv.Liquid assets | $72M | $33.5B |
| Total DebtShort + long-term debt | $267M | $123.3B |
| Interest CoverageEBIT ÷ Interest expense | 8.12x | — |
Total Returns (with DRIP)
A $10,000 investment in AAPL five years ago would be worth $21,049 today (with dividends reinvested), compared to $17,548 for EHC. Over the past 12 months, AAPL leads with a +9.7% total return vs EHC's +8.4%. The 3-year compound annual growth rate (CAGR) favors EHC at 24.8% vs AAPL's 21.9% — a key indicator of consistent wealth creation.
| Metric | EHCEncompass Health … | AAPLApple Inc. |
|---|---|---|
| YTD ReturnYear-to-date | +1.6% | -2.4% |
| 1-Year ReturnPast 12 months | +8.4% | +9.7% |
| 3-Year ReturnCumulative with dividends | +94.3% | +81.2% |
| 5-Year ReturnCumulative with dividends | +75.5% | +110.5% |
| 10-Year ReturnCumulative with dividends | +312.9% | +1027.4% |
| CAGR (3Y)Annualised 3-year return | +24.8% | +21.9% |
Risk & Volatility
EHC is the less volatile stock with a 0.49 beta — it tends to amplify market swings less than AAPL's 1.28 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. AAPL currently trades 91.5% from its 52-week high vs EHC's 84.3% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | EHCEncompass Health … | AAPLApple Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.49x | 1.28x |
| 52-Week HighHighest price in past year | $127.99 | $288.61 |
| 52-Week LowLowest price in past year | $92.53 | $169.21 |
| % of 52W HighCurrent price vs 52-week peak | +84.3% | +91.5% |
| RSI (14)Momentum oscillator 0–100 | 55.6 | 57.5 |
| Avg Volume (50D)Average daily shares traded | 1.1M | 40.9M |
Analyst Outlook
Wall Street rates EHC as "Buy" and AAPL as "Buy". Consensus price targets imply 40.4% upside for EHC (target: $152) vs 14.7% for AAPL (target: $303). For income investors, EHC offers the higher dividend yield at 0.64% vs AAPL's 0.39%.
| Metric | EHCEncompass Health … | AAPLApple Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $151.50 | $303.11 |
| # AnalystsCovering analysts | 26 | 109 |
| Dividend YieldAnnual dividend ÷ price | +0.6% | +0.4% |
| Dividend StreakConsecutive years of raises | 2 | 14 |
| Dividend / ShareAnnual DPS | $0.70 | $1.03 |
| Buyback YieldShare repurchases ÷ mkt cap | +1.5% | +2.3% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Encompass Health Co… (EHC) | 100 | 154.17 | +54.2% |
| Apple Inc. (AAPL) | 100 | 361.46 | +261.5% |
Apple Inc. (AAPL) returned +110% over 5 years vs Encompass Health Co… (EHC)'s +75%. A $10,000 investment in AAPL 5 years ago would be worth $21,049 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Encompass Health Co… (EHC) | $3.6B | $5.9B | +62.9% |
| Apple Inc. (AAPL) | $215.6B | $416.2B | +93.0% |
Encompass Health Corporation's revenue grew from $3.6B (2016) to $5.9B (2025) — a 5.6% CAGR. Apple Inc.'s revenue grew from $215.6B (2016) to $416.2B (2025) — a 7.6% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Encompass Health Co… (EHC) | 6.8% | 9.5% | +40.3% |
| Apple Inc. (AAPL) | 21.2% | 26.9% | +27.0% |
Encompass Health Corporation's net margin went from 7% (2016) to 10% (2025). Apple Inc.'s net margin went from 21% (2016) to 27% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Encompass Health Co… (EHC) | 14.6 | 19.1 | +30.8% |
| Apple Inc. (AAPL) | 18.4 | 36.4 | +97.8% |
Encompass Health Corporation has traded in a 13x–23x P/E range over 9 years; current trailing P/E is ~19x. Apple Inc. has traded in a 13x–41x P/E range over 9 years; current trailing P/E is ~35x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Encompass Health Co… (EHC) | 2.59 | 5.55 | +114.3% |
| Apple Inc. (AAPL) | 2.08 | 7.46 | +258.7% |
Encompass Health Corporation's EPS grew from $2.59 (2016) to $5.55 (2025) — a 9% CAGR. Apple Inc.'s EPS grew from $2.08 (2016) to $7.46 (2025) — a 15% CAGR.
Chart 6Free Cash Flow — 5 Years
Encompass Health Corporation generated $-738M FCF in 2025 (-548% vs 2021). Apple Inc. generated $99B FCF in 2025 (+6% vs 2021).
EHC vs AAPL: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is EHC or AAPL a better buy right now?
Encompass Health Corporation (EHC) offers the better valuation at 19.4x trailing P/E (18.2x 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.
02Which has the better valuation — EHC or AAPL?
On trailing P/E, Encompass Health Corporation (EHC) is the cheapest at 19.4x versus Apple Inc. at 35.4x. On forward P/E, Encompass Health Corporation is actually cheaper at 18.2x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Encompass Health Corporation wins at 1.28x versus Apple Inc.'s 1.74x — a reasonable growth-adjusted valuation.
03Which is the better long-term investment — EHC or AAPL?
Over the past 5 years, Apple Inc. (AAPL) delivered a total return of +110.5%, compared to +75.5% for Encompass Health Corporation (EHC). A $10,000 investment in AAPL five years ago would be worth approximately $21K today (assuming dividends reinvested). Over 10 years, the gap is even starker: AAPL returned +1027% versus EHC's +312.9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — EHC or AAPL?
By beta (market sensitivity over 5 years), Encompass Health Corporation (EHC) is the lower-risk stock at 0.49β versus Apple Inc.'s 1.28β — meaning AAPL is approximately 161% 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 8% versus 167% for Apple Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — EHC or AAPL?
Apple Inc. (AAPL) is the more profitable company, earning 26.9% net margin versus 9.5% for Encompass Health Corporation — meaning it keeps 26.9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: AAPL leads at 32.0% versus 12.8% for EHC. At the gross margin level — before operating expenses — EHC leads at 47.5%, 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.
06Is EHC or AAPL more undervalued right now?
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 1.28x versus Apple Inc.'s 1.74x. A PEG below 1.5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, Encompass Health Corporation (EHC) trades at 18.2x forward P/E versus 31.1x for Apple Inc. — 12.9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for EHC: 40.4% to $151.50.
07Which pays a better dividend — EHC or AAPL?
All stocks in this comparison pay dividends. Encompass Health Corporation (EHC) offers the highest yield at 0.6%, versus 0.4% for Apple Inc. (AAPL).
08Is EHC or AAPL better for a retirement portfolio?
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 0.49), 0.6% yield, +312.9% 10Y return). Both have compounded well over 10 years (EHC: +312.9%, AAPL: +1027%), 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.
09What are the main differences between EHC and AAPL?
These companies operate in different sectors (EHC (Healthcare) and AAPL (Technology)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced. EHC pays a dividend while AAPL 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.
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