EHC vs USPH vs SEM vs ENSG vs ACHC

For growth investors, The Ensign Group, Inc.

(ENSG) is the stronger pick with 18. 7% revenue growth year-over-year, versus 5. 0% for Acadia Healthcare Company, Inc. (ACHC). Select Medical Holdings Corporation (SEM) offers the better valuation at 13. 9x trailing P/E (13. 1x 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.

On trailing P/E, Select Medical Holdings Corporation (SEM) is the cheapest at 13.

9x versus U. S. Physical Therapy, Inc. at 41. 5x. On forward P/E, Select Medical Holdings Corporation is actually cheaper at 13. 1x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Encompass Health Corporation wins at 1. 27x versus The Ensign Group, Inc. 's 1. 68x — a reasonable growth-adjusted valuation.

Over the past 5 years, The Ensign Group, Inc.

(ENSG) delivered a total return of +103. 2%, compared to -61. 8% for Acadia Healthcare Company, Inc. (ACHC). Over 10 years, the gap is even starker: ENSG returned +752. 0% 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), Encompass Health Corporation (EHC) is the lower-risk stock at 0.

40β versus U. S. Physical Therapy, Inc. 's 0. 93β — meaning USPH is approximately 130% more volatile than EHC relative to the S&P 500. On balance sheet safety, U. S. Physical Therapy, Inc. (USPH) carries a lower debt/equity ratio of 55% versus 186% for The Ensign Group, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), The Ensign Group, Inc.

(ENSG) is pulling ahead at 18. 7% versus 5. 0% for Acadia Healthcare Company, Inc. (ACHC). On earnings-per-share growth, the picture is similar: Encompass Health Corporation grew EPS 24. 2% year-over-year, compared to -537. 4% for Acadia Healthcare Company, Inc.. Over a 3-year CAGR, ENSG leads at 18. 7% 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.

Encompass Health Corporation (EHC) is the more profitable company, earning 9.

5% net margin versus -33. 3% for Acadia Healthcare Company, Inc. — meaning it keeps 9. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: EHC leads at 17. 7% versus 6. 1% for SEM. At the gross margin level — before operating expenses — EHC leads at 95. 7%, 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.

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. 27x versus The Ensign Group, Inc. 's 1. 68x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, Select Medical Holdings Corporation (SEM) trades at 13. 1x forward P/E versus 23. 2x for The Ensign Group, Inc. — 10. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for USPH: 72. 9% to $102. 00.

In this comparison, USPH (3.

1% yield), SEM (1. 5% yield), EHC (0. 6% yield), ENSG (0. 1% yield) pay a dividend. ACHC does not pay a meaningful dividend and should not be held primarily for income.

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.

40), 0. 6% yield, +252. 2% 10Y return). Both have compounded well over 10 years (EHC: +252. 2%, 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.

In terms of investment character: EHC is a mid-cap quality compounder stock; USPH is a small-cap high-growth stock; SEM is a small-cap deep-value stock; ENSG is a mid-cap high-growth stock; ACHC is a small-cap quality compounder stock. EHC, USPH, SEM pay a dividend while ENSG, ACHC do 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.