EHC vs HCA: Encompass Health and HCA compared
The short version
From the latest prices and each company's SEC filings. Who's ahead on each measure, not which to buy.
- HCA is the larger company, worth $94.7B, about 7.9 times Encompass Health.
- Encompass Health grew revenue faster over the last year (+9.6% vs +4.3%).
- Encompass Health keeps more of each dollar of revenue as operating profit (18.0% vs 12.8%).
- On earnings, HCA is the cheaper stock (14.7x vs 20.6x).
- Encompass Health's price assumes faster free cash flow growth: about 9% a year, against -1% for HCA (reverse DCF).
Side by side
The stronger figure is shaded where higher (or, for valuation multiples, lower) reads as better. How the implied growth works.
| Measure | EHC | HCA |
|---|---|---|
| Market cap | $11.9B | $94.7B |
| Share price | $123.33 | $451.09 |
| Revenue (last fiscal year) | $5.9B | $75.6B |
| Free cash flow (last fiscal year) | $439M | $7.7B |
| Revenue growth, last year | +9.6% | +4.3% |
| Revenue growth per year, last 5 fiscal years | +10.3% | +6.5% |
| Operating margin | 18.0% | 12.8% |
| Net margin | 10.0% | 8.9% |
| Return on equity | 23.9% | — |
| P/E (trailing) | 20.6x | 14.7x |
| Price / free cash flow | 27.1x | 12.3x |
| EV / EBITDA | 9.86x | 9.60x |
| FCF growth the price implies | 9.0% | -1.4% |
| Dividend yield | 0.61% | 0.66% |
| Debt / equity | 1.54x | — |
| Fundamental grade | C | C |
| Superinvestors holding it | 4 | 12 |
| Insider purchases, last 12 months | 2 | 0 |
Results from SEC filings
Revenue and free cash flow by fiscal year, from each company's 10-K filings.
Encompass Health
| Year | Revenue | Free cash flow | Op. margin |
|---|---|---|---|
| 2021 | $4.0B | $177M | 13.9% |
| 2022 | $4.3B | $132M | 12.4% |
| 2023 | $4.8B | $268M | 15.2% |
| 2024 | $5.4B | $360M | 16.1% |
| 2025 | $5.9B | $439M | 17.7% |
HCA
| Year | Revenue | Free cash flow | Op. margin |
|---|---|---|---|
| 2021 | $58.8B | $5.4B | 16.7% |
| 2022 | $60.2B | $4.1B | 14.2% |
| 2023 | $65.0B | $4.7B | 11.9% |
| 2024 | $70.6B | $5.6B | 12.1% |
| 2025 | $75.6B | $7.7B | 13.0% |
Where the revenue comes from
Encompass Health · by segments, 2021
Inpatient Rehabilitation$4.0B78%
Home Health and Hospice$1.1B22%
HCA · by segments, 2023
American Group$22.3B34%
Atlantic Group$21.2B33%
National Group$18.1B28%
Corporate and Other$3.4B5%
Compare them in fullFifteen years of statements, quarterly results, DCF and IRR models, and any number of peers side by side.
Open EHC in InvestinglyQuestions
Which is bigger, Encompass Health or HCA?
HCA (HCA), at $94.7B against $11.9B.
Is EHC or HCA cheaper?
By trailing P/E, HCA (14.7x) is cheaper than Encompass Health (20.6x). A lower multiple can also mean the market expects less growth.
Which grows faster, EHC or HCA?
Encompass Health: revenue grew +9.6% over the last year, against +4.3%.
Prices and ratios as of the last daily update; statements from SEC filings. Information only, not investment advice.