UHS vs ENSG

For growth investors, The Ensign Group, Inc.

(ENSG) is the stronger pick with 18. 7% revenue growth year-over-year, versus 9. 7% for Universal Health Services, Inc. (UHS). Universal Health Services, Inc. (UHS) offers the better valuation at 7. 3x trailing P/E (7. 2x forward), making it the more compelling value choice. Analysts rate The Ensign Group, Inc. (ENSG) 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.

On trailing P/E, Universal Health Services, Inc.

(UHS) is the cheapest at 7. 3x versus The Ensign Group, Inc. at 30. 1x. On forward P/E, Universal Health Services, Inc. is actually cheaper at 7. 2x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Universal Health Services, Inc. wins at 0. 45x 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, The Ensign Group, Inc.

(ENSG) delivered a total return of +107. 7%, compared to +11. 7% for Universal Health Services, Inc. (UHS). Over 10 years, the gap is even starker: ENSG returned +768. 3% versus UHS's +30. 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), The Ensign Group, Inc.

(ENSG) is the lower-risk stock at 0. 42β versus Universal Health Services, Inc. 's 0. 60β — meaning UHS is approximately 43% more volatile than ENSG relative to the S&P 500. On balance sheet safety, Universal Health Services, Inc. (UHS) carries a lower debt/equity ratio of 74% 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 9. 7% for Universal Health Services, Inc. (UHS). On earnings-per-share growth, the picture is similar: Universal Health Services, Inc. grew EPS 37. 3% 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.

Universal Health Services, Inc.

(UHS) is the more profitable company, earning 8. 6% net margin versus 6. 8% for The Ensign Group, Inc. — meaning it keeps 8. 6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: UHS leads at 11. 5% versus 8. 6% for ENSG. At the gross margin level — before operating expenses — UHS leads at 90. 4%, 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, Universal Health Services, Inc. (UHS) is the more undervalued stock at a PEG of 0. 45x 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, Universal Health Services, Inc. (UHS) trades at 7. 2x forward P/E versus 23. 4x for The Ensign Group, Inc. — 16. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for UHS: 37. 4% to $231. 50.

All stocks in this comparison pay dividends.

Universal Health Services, Inc. (UHS) offers the highest yield at 0. 5%, versus 0. 1% for The Ensign Group, Inc. (ENSG).

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. 42), +768. 3% 10Y return). Both have compounded well over 10 years (ENSG: +768. 3%, UHS: +30. 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.

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: UHS is a mid-cap deep-value stock; ENSG is a mid-cap high-growth 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.