Comprehensive Stock Comparison
Compare National HealthCare Corporation (NHC) vs Select Medical Holdings Corporation (SEM) 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 SEM's 5.1% |
| Value | SEM | Lower P/E (12.0x vs 20.5x) |
| Quality / Margins | NHC | 6.7% net margin vs SEM's 2.8% |
| Stability / Safety | NHC | Beta 0.44 vs SEM's 0.72, lower leverage |
| Dividends | NHC | 1.5% yield, 12-year raise streak, vs SEM's 1.7% |
| Momentum (1Y) | NHC | +78.2% vs SEM's -16.3% |
| Efficiency (ROA) | NHC | 6.4% ROA vs SEM's 1.9%, ROIC 8.4% vs 0.0% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
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.
Select Medical operates a network of specialized healthcare facilities including critical illness recovery hospitals, rehabilitation hospitals, outpatient clinics, and occupational health centers across the United States. It generates revenue primarily from patient care services—roughly 60% from its critical illness and rehabilitation hospital segments and 40% from outpatient and occupational health services—with most payments coming from government programs like Medicare and private insurers. The company's competitive advantage lies in its specialized, post-acute care focus and geographic network density that creates referral relationships with acute-care hospitals.
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 4 of 6 categories (Financial Metrics, Profitability & Efficiency). SEM leads in 1 (Valuation Metrics). 1 tied.
Financial Metrics (TTM)
SEM is the larger business by revenue, generating $3.9B annually — 2.6x NHC's $1.5B. Profitability is closely matched — net margins range from 6.7% (NHC) to 2.8% (SEM). On growth, NHC holds the edge at +12.5% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | NHCNational HealthCa… | SEMSelect Medical Ho… |
|---|---|---|
| RevenueTrailing 12 months | $1.5B | $3.9B |
| EBITDAEarnings before interest/tax | $166M | $197M |
| Net IncomeAfter-tax profit | $101M | $110M |
| Free Cash FlowCash after capex | $147M | $174M |
| Gross MarginGross profit ÷ Revenue | +38.5% | +8.2% |
| Operating MarginEBIT ÷ Revenue | +8.1% | +1.2% |
| Net MarginNet income ÷ Revenue | +6.7% | +2.8% |
| FCF MarginFCF ÷ Revenue | +9.8% | +4.4% |
| Rev. Growth (YoY)Latest quarter vs prior year | +12.5% | -22.6% |
| EPS Growth (YoY)Latest quarter vs prior year | -8.4% | -46.5% |
Valuation Metrics
At 12.9x trailing earnings, SEM trades at a 39% valuation discount to NHC's 21.3x P/E. On an enterprise value basis, NHC's 15.1x EV/EBITDA is more attractive than SEM's 20.3x.
| Metric | NHCNational HealthCa… | SEMSelect Medical Ho… |
|---|---|---|
| Market CapShares × price | $2.5B | $1.9B |
| Enterprise ValueMkt cap + debt − cash | $2.6B | $2.9B |
| Trailing P/EPrice ÷ TTM EPS | 21.32x | 12.91x |
| Forward P/EPrice ÷ next-FY EPS est. | 20.51x | 12.04x |
| PEG RatioP/E ÷ EPS growth rate | 0.93x | — |
| EV / EBITDAEnterprise value multiple | 15.14x | 20.26x |
| Price / SalesMarket cap ÷ Revenue | 1.73x | 0.34x |
| Price / BookPrice ÷ Book value/share | 2.38x | 0.91x |
| Price / FCFMarket cap ÷ FCF | 17.07x | 4.84x |
Profitability & Efficiency
NHC delivers a 9.6% return on equity — every $100 of shareholder capital generates $10 in annual profit, vs $5 for SEM. NHC carries lower financial leverage with a 0.08x debt-to-equity ratio, signaling a more conservative balance sheet compared to SEM's 0.51x. On the Piotroski fundamental quality scale (0–9), SEM scores 6/9 vs NHC's 2/9, reflecting solid financial health.
| Metric | NHCNational HealthCa… | SEMSelect Medical Ho… |
|---|---|---|
| ROE (TTM)Return on equity | +9.6% | +5.5% |
| ROA (TTM)Return on assets | +6.4% | +1.9% |
| ROICReturn on invested capital | +8.4% | +0.0% |
| ROCEReturn on capital employed | — | +0.0% |
| Piotroski ScoreFundamental quality 0–9 | 2 | 6 |
| Debt / EquityFinancial leverage | 0.08x | 0.51x |
| Net DebtTotal debt minus cash | $87M | $1.0B |
| Cash & Equiv.Liquid assets | — | $27M |
| Total DebtShort + long-term debt | $87M | $1.0B |
| Interest CoverageEBIT ÷ Interest expense | 24.41x | 1.12x |
Total Returns (with DRIP)
A $10,000 investment in NHC five years ago would be worth $24,747 today (with dividends reinvested), compared to $9,138 for SEM. Over the past 12 months, NHC leads with a +78.2% total return vs SEM's -16.3%. The 3-year compound annual growth rate (CAGR) favors NHC at 45.3% vs SEM's 2.5% — a key indicator of consistent wealth creation.
| Metric | NHCNational HealthCa… | SEMSelect Medical Ho… |
|---|---|---|
| YTD ReturnYear-to-date | +25.4% | +1.0% |
| 1-Year ReturnPast 12 months | +78.2% | -16.3% |
| 3-Year ReturnCumulative with dividends | +206.5% | +7.6% |
| 5-Year ReturnCumulative with dividends | +147.5% | -8.6% |
| 10-Year ReturnCumulative with dividends | +188.4% | +208.0% |
| CAGR (3Y)Annualised 3-year return | +45.3% | +2.5% |
Risk & Volatility
NHC is the less volatile stock with a 0.44 beta — it tends to amplify market swings less than SEM's 0.72 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 SEM's 80.4% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | NHCNational HealthCa… | SEMSelect Medical Ho… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.44x | 0.72x |
| 52-Week HighHighest price in past year | $171.65 | $18.61 |
| 52-Week LowLowest price in past year | $89.14 | $11.65 |
| % of 52W HighCurrent price vs 52-week peak | +95.3% | +80.4% |
| RSI (14)Momentum oscillator 0–100 | 59.4 | 40.0 |
| Avg Volume (50D)Average daily shares traded | 58K | 608K |
Analyst Outlook
For income investors, SEM offers the higher dividend yield at 1.69% vs NHC's 1.51%.
| Metric | NHCNational HealthCa… | SEMSelect Medical Ho… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | — | Buy |
| Price TargetConsensus 12-month target | — | $18.00 |
| # AnalystsCovering analysts | — | 13 |
| Dividend YieldAnnual dividend ÷ price | +1.5% | +1.7% |
| Dividend StreakConsecutive years of raises | 12 | 0 |
| Dividend / ShareAnnual DPS | $2.47 | $0.25 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.6% | +5.4% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Apr 20 | Feb 26 | Change |
|---|---|---|---|
| National HealthCare… (NHC) | 100 | 222.52 | +122.5% |
| Select Medical Hold… (SEM) | 55.91 | 118.93 | +112.7% |
National HealthCare… (NHC) returned +147% over 5 years vs Select Medical Hold… (SEM)'s -9%. 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 |
|---|---|---|---|
| National HealthCare… (NHC) | $924M | $1.5B | +59.1% |
| Select Medical Hold… (SEM) | $4.3B | $5.5B | +27.2% |
National HealthCare Corporation's revenue grew from $924M (2016) to $1.5B (2025) — a 5.3% CAGR. Select Medical Holdings Corporation's revenue grew from $4.3B (2016) to $5.5B (2025) — a 2.7% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| National HealthCare… (NHC) | 5.5% | 8.2% | +49.2% |
| Select Medical Hold… (SEM) | 2.7% | 2.7% | -0.4% |
National HealthCare Corporation's net margin went from 5% (2016) to 8% (2025). Select Medical Holdings Corporation's net margin went from 3% (2016) to 3% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| National HealthCare… (NHC) | 16.5 | 17.9 | +8.5% |
| Select Medical Hold… (SEM) | 10.9 | 12.8 | +17.4% |
National HealthCare Corporation has traded in a 8x–41x P/E range over 9 years; current trailing P/E is ~21x. Select Medical Holdings Corporation has traded in a 5x–13x P/E range over 9 years; current trailing P/E is ~13x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| National HealthCare… (NHC) | 3.32 | 7.67 | +131.0% |
| Select Medical Hold… (SEM) | 0.87 | 1.16 | +33.3% |
National HealthCare Corporation's EPS grew from $3.32 (2016) to $7.67 (2025) — a 10% CAGR. Select Medical Holdings Corporation's EPS grew from $0.87 (2016) to $1.16 (2025) — a 3% CAGR.
Chart 6Free Cash Flow — 5 Years
National HealthCare Corporation generated $149M FCF in 2025 (+546% vs 2021). Select Medical Holdings Corporation generated $383M FCF in 2025 (+73% vs 2021).
NHC vs SEM: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is NHC or SEM a better buy right now?
Select Medical Holdings Corporation (SEM) offers the better valuation at 12.9x trailing P/E (12.0x forward), making it the more compelling value choice. Analysts rate Select Medical Holdings Corporation (SEM) a "Buy" — based on 13 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 — NHC or SEM?
On trailing P/E, Select Medical Holdings Corporation (SEM) is the cheapest at 12.9x versus National HealthCare Corporation at 21.3x. On forward P/E, Select Medical Holdings Corporation is actually cheaper at 12.0x.
03Which is the better long-term investment — NHC or SEM?
Over the past 5 years, National HealthCare Corporation (NHC) delivered a total return of +147.5%, compared to -8.6% for Select Medical Holdings Corporation (SEM). 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: SEM returned +208.0% 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 — NHC or SEM?
By beta (market sensitivity over 5 years), National HealthCare Corporation (NHC) is the lower-risk stock at 0.44β versus Select Medical Holdings Corporation's 0.72β — meaning SEM is approximately 65% 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 51% for Select Medical Holdings Corporation — giving it more financial flexibility in a downturn.
05Which has better profit margins — NHC or SEM?
National HealthCare Corporation (NHC) is the more profitable company, earning 8.2% net margin versus 2.7% for Select Medical Holdings Corporation — meaning it keeps 8.2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: NHC leads at 8.7% versus 0.0% for SEM. At the gross margin level — before operating expenses — NHC leads at 37.3%, 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 NHC or SEM more undervalued right now?
On forward earnings alone, Select Medical Holdings Corporation (SEM) trades at 12.0x forward P/E versus 20.5x for National HealthCare Corporation — 8.5x cheaper on a one-year earnings basis.
07Which pays a better dividend — NHC or SEM?
All stocks in this comparison pay dividends. Select Medical Holdings Corporation (SEM) offers the highest yield at 1.7%, versus 1.5% for National HealthCare Corporation (NHC).
08Is NHC or SEM better for a retirement portfolio?
For long-horizon retirement investors, National HealthCare Corporation (NHC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.44), 1.5% yield, +188.4% 10Y return). Both have compounded well over 10 years (NHC: +188.4%, SEM: +208.0%), 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 NHC and SEM?
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: NHC is a small-cap quality compounder stock; SEM is a small-cap deep-value stock. 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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