Comprehensive Stock Comparison
Compare Encompass Health Corporation (EHC) vs National HealthCare Corporation (NHC) 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 | NHC | 13.2% revenue growth vs EHC's 10.5% |
| Value | EHC | Lower P/E (18.2x vs 20.5x) |
| Quality / Margins | EHC | 9.3% net margin vs NHC's 6.7% |
| Stability / Safety | NHC | Beta 0.44 vs EHC's 0.49, lower leverage |
| Dividends | NHC | 1.5% yield, 12-year raise streak, vs EHC's 0.6% |
| Momentum (1Y) | NHC | +78.2% vs EHC's +8.4% |
| Efficiency (ROA) | EHC | 7.9% ROA vs NHC's 6.4%, ROIC 12.7% vs 8.4% |
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.
National HealthCare Corporation is a diversified healthcare services company that operates skilled nursing facilities, assisted living communities, homecare and hospice agencies, and behavioral health services. It generates revenue primarily from patient care services at its facilities — with skilled nursing contributing the largest portion — through Medicare, Medicaid, and private pay sources. The company's competitive advantage lies in its diversified portfolio across the care continuum and its operational expertise in managing complex regulatory environments within the post-acute care sector.
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
NHC leads in 3 of 6 categories (Total Returns, Risk & Volatility). EHC leads in 1 (Financial Metrics). 2 tied.
Financial Metrics (TTM)
EHC is the larger business by revenue, generating $5.8B annually — 3.9x NHC's $1.5B. Profitability is closely matched — net margins range from 9.3% (EHC) to 6.7% (NHC). On growth, NHC holds the edge at +12.5% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | EHCEncompass Health … | NHCNational HealthCa… |
|---|---|---|
| RevenueTrailing 12 months | $5.8B | $1.5B |
| EBITDAEarnings before interest/tax | $1.3B | $166M |
| Net IncomeAfter-tax profit | $541M | $101M |
| Free Cash FlowCash after capex | $403M | $147M |
| Gross MarginGross profit ÷ Revenue | +43.8% | +38.5% |
| Operating MarginEBIT ÷ Revenue | +17.3% | +8.1% |
| Net MarginNet income ÷ Revenue | +9.3% | +6.7% |
| FCF MarginFCF ÷ Revenue | +6.9% | +9.8% |
| Rev. Growth (YoY)Latest quarter vs prior year | +9.4% | +12.5% |
| EPS Growth (YoY)Latest quarter vs prior year | +17.0% | -8.4% |
Valuation Metrics
At 19.4x trailing earnings, EHC trades at a 9% valuation discount to NHC's 21.3x P/E. Adjusting for growth (PEG ratio), NHC offers better value at 0.93x vs EHC's 1.36x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | EHCEncompass Health … | NHCNational HealthCa… |
|---|---|---|
| Market CapShares × price | $10.8B | $2.5B |
| Enterprise ValueMkt cap + debt − cash | $11.0B | $2.6B |
| Trailing P/EPrice ÷ TTM EPS | 19.44x | 21.32x |
| Forward P/EPrice ÷ next-FY EPS est. | 18.22x | 20.51x |
| PEG RatioP/E ÷ EPS growth rate | 1.36x | 0.93x |
| EV / EBITDAEnterprise value multiple | 10.09x | 15.14x |
| Price / SalesMarket cap ÷ Revenue | 1.82x | 1.73x |
| Price / BookPrice ÷ Book value/share | 3.37x | 2.38x |
| Price / FCFMarket cap ÷ FCF | — | 17.07x |
Profitability & Efficiency
EHC delivers a 17.0% return on equity — every $100 of shareholder capital generates $17 in annual profit, vs $10 for NHC. NHC carries lower financial leverage with a 0.08x debt-to-equity ratio, signaling a more conservative balance sheet compared to EHC's 0.08x. On the Piotroski fundamental quality scale (0–9), EHC scores 7/9 vs NHC's 2/9, reflecting strong financial health.
| Metric | EHCEncompass Health … | NHCNational HealthCa… |
|---|---|---|
| ROE (TTM)Return on equity | +17.0% | +9.6% |
| ROA (TTM)Return on assets | +7.9% | +6.4% |
| ROICReturn on invested capital | +12.7% | +8.4% |
| ROCEReturn on capital employed | +12.7% | — |
| Piotroski ScoreFundamental quality 0–9 | 7 | 2 |
| Debt / EquityFinancial leverage | 0.08x | 0.08x |
| Net DebtTotal debt minus cash | $195M | $87M |
| Cash & Equiv.Liquid assets | $72M | — |
| Total DebtShort + long-term debt | $267M | $87M |
| Interest CoverageEBIT ÷ Interest expense | 8.12x | 24.41x |
Total Returns (with DRIP)
A $10,000 investment in NHC five years ago would be worth $24,747 today (with dividends reinvested), compared to $17,548 for EHC. Over the past 12 months, NHC leads with a +78.2% total return vs EHC's +8.4%. The 3-year compound annual growth rate (CAGR) favors NHC at 45.3% vs EHC's 24.8% — a key indicator of consistent wealth creation.
| Metric | EHCEncompass Health … | NHCNational HealthCa… |
|---|---|---|
| YTD ReturnYear-to-date | +1.6% | +25.4% |
| 1-Year ReturnPast 12 months | +8.4% | +78.2% |
| 3-Year ReturnCumulative with dividends | +94.3% | +206.5% |
| 5-Year ReturnCumulative with dividends | +75.5% | +147.5% |
| 10-Year ReturnCumulative with dividends | +312.9% | +188.4% |
| CAGR (3Y)Annualised 3-year return | +24.8% | +45.3% |
Risk & Volatility
NHC is the less volatile stock with a 0.44 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. NHC currently trades 95.3% 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 … | NHCNational HealthCa… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.49x | 0.44x |
| 52-Week HighHighest price in past year | $127.99 | $171.65 |
| 52-Week LowLowest price in past year | $92.53 | $89.14 |
| % of 52W HighCurrent price vs 52-week peak | +84.3% | +95.3% |
| RSI (14)Momentum oscillator 0–100 | 55.6 | 59.4 |
| Avg Volume (50D)Average daily shares traded | 1.1M | 58K |
Analyst Outlook
For income investors, NHC offers the higher dividend yield at 1.51% vs EHC's 0.64%.
| Metric | EHCEncompass Health … | NHCNational HealthCa… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | — |
| Price TargetConsensus 12-month target | $151.50 | — |
| # AnalystsCovering analysts | 26 | — |
| Dividend YieldAnnual dividend ÷ price | +0.6% | +1.5% |
| Dividend StreakConsecutive years of raises | 2 | 12 |
| Dividend / ShareAnnual DPS | $0.70 | $2.47 |
| Buyback YieldShare repurchases ÷ mkt cap | +1.5% | +0.6% |
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% |
| National HealthCare… (NHC) | 100 | 206.09 | +106.1% |
National HealthCare… (NHC) returned +147% over 5 years vs Encompass Health Co… (EHC)'s +75%. A $10,000 investment in NHC 5 years ago would be worth $24,747 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Encompass Health Co… (EHC) | $3.6B | $5.9B | +62.9% |
| National HealthCare… (NHC) | $924M | $1.5B | +59.1% |
Encompass Health Corporation's revenue grew from $3.6B (2016) to $5.9B (2025) — a 5.6% CAGR. National HealthCare Corporation's revenue grew from $924M (2016) to $1.5B (2025) — a 5.3% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Encompass Health Co… (EHC) | 6.8% | 9.5% | +40.3% |
| National HealthCare… (NHC) | 5.5% | 8.2% | +49.2% |
Encompass Health Corporation's net margin went from 7% (2016) to 10% (2025). National HealthCare Corporation's net margin went from 5% (2016) to 8% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Encompass Health Co… (EHC) | 14.6 | 19.1 | +30.8% |
| National HealthCare… (NHC) | 16.5 | 17.9 | +8.5% |
Encompass Health Corporation has traded in a 13x–23x P/E range over 9 years; current trailing P/E is ~19x. National HealthCare Corporation has traded in a 8x–41x P/E range over 9 years; current trailing P/E is ~21x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Encompass Health Co… (EHC) | 2.59 | 5.55 | +114.3% |
| National HealthCare… (NHC) | 3.32 | 7.67 | +131.0% |
Encompass Health Corporation's EPS grew from $2.59 (2016) to $5.55 (2025) — a 9% CAGR. National HealthCare Corporation's EPS grew from $3.32 (2016) to $7.67 (2025) — a 10% CAGR.
Chart 6Free Cash Flow — 5 Years
Encompass Health Corporation generated $-738M FCF in 2025 (-548% vs 2021). National HealthCare Corporation generated $149M FCF in 2025 (+546% vs 2021).
EHC vs NHC: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is EHC or NHC 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 NHC?
On trailing P/E, Encompass Health Corporation (EHC) is the cheapest at 19.4x versus National HealthCare Corporation at 21.3x. 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: National HealthCare Corporation wins at 0.89x versus Encompass Health Corporation's 1.28x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.
03Which is the better long-term investment — EHC or NHC?
Over the past 5 years, National HealthCare Corporation (NHC) delivered a total return of +147.5%, compared to +75.5% for Encompass Health Corporation (EHC). A $10,000 investment in NHC five years ago would be worth approximately $25K today (assuming dividends reinvested). Over 10 years, the gap is even starker: EHC returned +312.9% versus NHC's +188.4%. 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 NHC?
By beta (market sensitivity over 5 years), National HealthCare Corporation (NHC) is the lower-risk stock at 0.44β versus Encompass Health Corporation's 0.49β — meaning EHC is approximately 12% more volatile than NHC relative to the S&P 500. On balance sheet safety, National HealthCare Corporation (NHC) carries a lower debt/equity ratio of 8% versus 8% for Encompass Health Corporation — giving it more financial flexibility in a downturn.
05Which has better profit margins — EHC or NHC?
Encompass Health Corporation (EHC) is the more profitable company, earning 9.5% net margin versus 8.2% for National HealthCare Corporation — 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 8.7% for NHC. 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 NHC 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, National HealthCare Corporation (NHC) is the more undervalued stock at a PEG of 0.89x versus Encompass Health Corporation's 1.28x. A PEG below 1.0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Encompass Health Corporation (EHC) trades at 18.2x forward P/E versus 20.5x for National HealthCare Corporation — 2.3x cheaper on a one-year earnings basis.
07Which pays a better dividend — EHC or NHC?
All stocks in this comparison pay dividends. National HealthCare Corporation (NHC) offers the highest yield at 1.5%, versus 0.6% for Encompass Health Corporation (EHC).
08Is EHC or NHC 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%, NHC: +188.4%), 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 NHC?
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.
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