Comprehensive Stock Comparison
Compare Encompass Health Corporation (EHC) vs The Ensign Group, Inc. (ENSG) 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 | ENSG | 18.7% revenue growth vs EHC's 10.5% |
| Value | EHC | Lower P/E (18.2x vs 28.5x), PEG 1.28 vs 2.06 |
| Quality / Margins | EHC | 9.3% net margin vs ENSG's 6.8% |
| Stability / Safety | ENSG | Beta 0.43 vs EHC's 0.49 |
| Dividends | EHC | 0.6% yield, 2-year raise streak, vs ENSG's 0.1% |
| Momentum (1Y) | ENSG | +66.0% vs EHC's +8.4% |
| Efficiency (ROA) | EHC | 7.9% ROA vs ENSG's 6.3%, ROIC 12.7% vs 8.9% |
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.
The Ensign Group operates a network of skilled nursing facilities and senior living communities across multiple states. It generates revenue primarily from patient care reimbursements—mainly Medicare and Medicaid—along with private pay services and ancillary offerings like therapy and diagnostics. The company's competitive advantage lies in its decentralized operational model that empowers local leaders and its disciplined acquisition strategy for underperforming facilities.
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
EHC leads in 3 of 6 categories (Financial Metrics, Valuation Metrics). ENSG leads in 2 (Total Returns, Risk & Volatility). 1 tied.
Financial Metrics (TTM)
EHC and ENSG operate at a comparable scale, with $5.8B and $4.8B in trailing revenue. Profitability is closely matched — net margins range from 9.3% (EHC) to 6.8% (ENSG). On growth, ENSG holds the edge at +19.8% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | EHCEncompass Health … | ENSGThe Ensign Group,… |
|---|---|---|
| RevenueTrailing 12 months | $5.8B | $4.8B |
| EBITDAEarnings before interest/tax | $1.3B | $501M |
| Net IncomeAfter-tax profit | $541M | $328M |
| Free Cash FlowCash after capex | $403M | $290M |
| Gross MarginGross profit ÷ Revenue | +43.8% | +15.7% |
| Operating MarginEBIT ÷ Revenue | +17.3% | +8.3% |
| Net MarginNet income ÷ Revenue | +9.3% | +6.8% |
| FCF MarginFCF ÷ Revenue | +6.9% | +6.0% |
| Rev. Growth (YoY)Latest quarter vs prior year | +9.4% | +19.8% |
| EPS Growth (YoY)Latest quarter vs prior year | +17.0% | +6.0% |
Valuation Metrics
At 19.4x trailing earnings, EHC trades at a 47% valuation discount to ENSG's 36.7x P/E. Adjusting for growth (PEG ratio), EHC offers better value at 1.36x vs ENSG's 2.66x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | EHCEncompass Health … | ENSGThe Ensign Group,… |
|---|---|---|
| Market CapShares × price | $10.8B | $12.4B |
| Enterprise ValueMkt cap + debt − cash | $11.0B | $14.0B |
| Trailing P/EPrice ÷ TTM EPS | 19.44x | 36.67x |
| Forward P/EPrice ÷ next-FY EPS est. | 18.22x | 28.49x |
| PEG RatioP/E ÷ EPS growth rate | 1.36x | 2.66x |
| EV / EBITDAEnterprise value multiple | 10.09x | 26.37x |
| Price / SalesMarket cap ÷ Revenue | 1.82x | 2.45x |
| Price / BookPrice ÷ Book value/share | 3.37x | 5.64x |
| Price / FCFMarket cap ÷ FCF | — | 33.45x |
Profitability & Efficiency
EHC delivers a 17.0% return on equity — every $100 of shareholder capital generates $17 in annual profit, vs $15 for ENSG. EHC carries lower financial leverage with a 0.08x debt-to-equity ratio, signaling a more conservative balance sheet compared to ENSG's 0.93x.
| Metric | EHCEncompass Health … | ENSGThe Ensign Group,… |
|---|---|---|
| ROE (TTM)Return on equity | +17.0% | +15.5% |
| ROA (TTM)Return on assets | +7.9% | +6.3% |
| ROICReturn on invested capital | +12.7% | +8.9% |
| ROCEReturn on capital employed | +12.7% | +10.0% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 7 |
| Debt / EquityFinancial leverage | 0.08x | 0.93x |
| Net DebtTotal debt minus cash | $195M | $1.6B |
| Cash & Equiv.Liquid assets | $72M | $504M |
| Total DebtShort + long-term debt | $267M | $2.1B |
| Interest CoverageEBIT ÷ Interest expense | 8.12x | 53.02x |
Total Returns (with DRIP)
A $10,000 investment in ENSG five years ago would be worth $25,875 today (with dividends reinvested), compared to $17,548 for EHC. Over the past 12 months, ENSG leads with a +66.0% total return vs EHC's +8.4%. The 3-year compound annual growth rate (CAGR) favors ENSG at 33.9% vs EHC's 24.8% — a key indicator of consistent wealth creation.
| Metric | EHCEncompass Health … | ENSGThe Ensign Group,… |
|---|---|---|
| YTD ReturnYear-to-date | +1.6% | +23.1% |
| 1-Year ReturnPast 12 months | +8.4% | +66.0% |
| 3-Year ReturnCumulative with dividends | +94.3% | +140.2% |
| 5-Year ReturnCumulative with dividends | +75.5% | +158.8% |
| 10-Year ReturnCumulative with dividends | +312.9% | +1027.2% |
| CAGR (3Y)Annualised 3-year return | +24.8% | +33.9% |
Risk & Volatility
ENSG is the less volatile stock with a 0.43 beta — it tends to amplify market swings less than EHC's 0.49 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. ENSG currently trades 98.7% 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 … | ENSGThe Ensign Group,… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.49x | 0.43x |
| 52-Week HighHighest price in past year | $127.99 | $217.00 |
| 52-Week LowLowest price in past year | $92.53 | $118.73 |
| % of 52W HighCurrent price vs 52-week peak | +84.3% | +98.7% |
| RSI (14)Momentum oscillator 0–100 | 55.6 | 66.7 |
| Avg Volume (50D)Average daily shares traded | 1.1M | 333K |
Analyst Outlook
Wall Street rates EHC as "Buy" and ENSG as "Buy". Consensus price targets imply 40.4% upside for EHC (target: $152) vs 3.8% for ENSG (target: $222). For income investors, EHC offers the higher dividend yield at 0.64% vs ENSG's 0.11%.
| Metric | EHCEncompass Health … | ENSGThe Ensign Group,… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $151.50 | $222.33 |
| # AnalystsCovering analysts | 26 | 13 |
| Dividend YieldAnnual dividend ÷ price | +0.6% | +0.1% |
| Dividend StreakConsecutive years of raises | 2 | 12 |
| Dividend / ShareAnnual DPS | $0.70 | $0.24 |
| Buyback YieldShare repurchases ÷ mkt cap | +1.5% | +0.0% |
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% |
| The Ensign Group, I… (ENSG) | 100 | 389.26 | +289.3% |
The Ensign Group, I… (ENSG) returned +159% over 5 years vs Encompass Health Co… (EHC)'s +75%. A $10,000 investment in ENSG 5 years ago would be worth $25,875 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Encompass Health Co… (EHC) | $3.6B | $5.9B | +62.9% |
| The Ensign Group, I… (ENSG) | $1.7B | $5.1B | +205.6% |
Encompass Health Corporation's revenue grew from $3.6B (2016) to $5.9B (2025) — a 5.6% CAGR. The Ensign Group, Inc.'s revenue grew from $1.7B (2016) to $5.1B (2025) — a 13.2% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Encompass Health Co… (EHC) | 6.8% | 9.5% | +40.3% |
| The Ensign Group, I… (ENSG) | 3.0% | 6.8% | +125.1% |
Encompass Health Corporation's net margin went from 7% (2016) to 10% (2025). The Ensign Group, Inc.'s net margin went from 3% (2016) to 7% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Encompass Health Co… (EHC) | 14.6 | 19.1 | +30.8% |
| The Ensign Group, I… (ENSG) | 27 | 29.8 | +10.4% |
Encompass Health Corporation has traded in a 13x–23x P/E range over 9 years; current trailing P/E is ~19x. The Ensign Group, Inc. has traded in a 21x–31x P/E range over 9 years; current trailing P/E is ~37x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Encompass Health Co… (EHC) | 2.59 | 5.55 | +114.3% |
| The Ensign Group, I… (ENSG) | 0.96 | 5.84 | +508.3% |
Encompass Health Corporation's EPS grew from $2.59 (2016) to $5.55 (2025) — a 9% CAGR. The Ensign Group, Inc.'s EPS grew from $0.96 (2016) to $5.84 (2025) — a 22% CAGR.
Chart 6Free Cash Flow — 5 Years
Encompass Health Corporation generated $-738M FCF in 2025 (-548% vs 2021). The Ensign Group, Inc. generated $371M FCF in 2025 (+80% vs 2021).
EHC vs ENSG: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is EHC or ENSG 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 ENSG?
On trailing P/E, Encompass Health Corporation (EHC) is the cheapest at 19.4x versus The Ensign Group, Inc. at 36.7x. 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 The Ensign Group, Inc.'s 2.06x — a reasonable growth-adjusted valuation.
03Which is the better long-term investment — EHC or ENSG?
Over the past 5 years, The Ensign Group, Inc. (ENSG) delivered a total return of +158.8%, compared to +75.5% for Encompass Health Corporation (EHC). A $10,000 investment in ENSG five years ago would be worth approximately $26K today (assuming dividends reinvested). Over 10 years, the gap is even starker: ENSG 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 ENSG?
By beta (market sensitivity over 5 years), The Ensign Group, Inc. (ENSG) is the lower-risk stock at 0.43β versus Encompass Health Corporation's 0.49β — meaning EHC is approximately 15% more volatile than ENSG relative to the S&P 500. On balance sheet safety, Encompass Health Corporation (EHC) carries a lower debt/equity ratio of 8% versus 93% for The Ensign Group, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — EHC or ENSG?
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 12.8% versus 8.4% for ENSG. 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 ENSG 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 The Ensign Group, Inc.'s 2.06x. 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 28.5x for The Ensign Group, Inc. — 10.3x 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 ENSG?
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).
08Is EHC or ENSG better for a retirement portfolio?
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 0.43), +1027% 10Y return). Both have compounded well over 10 years (ENSG: +1027%, EHC: +312.9%), 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.
09What are the main differences between EHC and ENSG?
Both stocks operate in the Healthcare sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. 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.
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