HCA vs ENSG

For growth investors, The Ensign Group, Inc.

(ENSG) is the stronger pick with 18. 7% revenue growth year-over-year, versus 7. 1% for HCA Healthcare, Inc. (HCA). HCA Healthcare, Inc. (HCA) offers the better valuation at 15. 1x trailing P/E (14. 2x forward), making it the more compelling value choice. Analysts rate HCA Healthcare, Inc. (HCA) a "Buy" — based on 46 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, HCA Healthcare, Inc.

(HCA) is the cheapest at 15. 1x versus The Ensign Group, Inc. at 30. 1x. On forward P/E, HCA Healthcare, Inc. is actually cheaper at 14. 2x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: HCA Healthcare, Inc. wins at 0. 68x versus The Ensign Group, Inc. 's 1. 70x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, HCA Healthcare, Inc.

(HCA) delivered a total return of +111. 1%, compared to +107. 7% for The Ensign Group, Inc. (ENSG). Over 10 years, the gap is even starker: ENSG returned +768. 3% versus HCA's +451. 4%. 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), HCA Healthcare, Inc.

(HCA) is the lower-risk stock at 0. 29β versus The Ensign Group, Inc. 's 0. 42β — meaning ENSG is approximately 47% more volatile than HCA relative to the S&P 500.

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

(ENSG) is pulling ahead at 18. 7% versus 7. 1% for HCA Healthcare, Inc. (HCA). On earnings-per-share growth, the picture is similar: HCA Healthcare, Inc. grew EPS 29. 0% year-over-year, compared to 14. 1% for The Ensign Group, 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.

HCA Healthcare, Inc.

(HCA) is the more profitable company, earning 9. 0% net margin versus 6. 8% for The Ensign Group, Inc. — meaning it keeps 9. 0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: HCA leads at 15. 8% versus 8. 6% for ENSG. At the gross margin level — before operating expenses — HCA leads at 41. 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.

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, HCA Healthcare, Inc. (HCA) is the more undervalued stock at a PEG of 0. 68x versus The Ensign Group, Inc. 's 1. 70x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, HCA Healthcare, Inc. (HCA) trades at 14. 2x forward P/E versus 23. 4x for The Ensign Group, Inc. — 9. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ENSG: 26. 4% to $222. 33.

All stocks in this comparison pay dividends.

HCA Healthcare, Inc. (HCA) offers the highest yield at 0. 7%, versus 0. 1% for The Ensign Group, Inc. (ENSG).

For long-horizon retirement investors, HCA Healthcare, Inc.

(HCA) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 29), 0. 7% yield, +451. 4% 10Y return). Both have compounded well over 10 years (HCA: +451. 4%, ENSG: +768. 3%), 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: HCA is a mid-cap deep-value stock; ENSG is a mid-cap high-growth stock. HCA 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.