Encompass Health vs Option Care Health
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The short version
- Encompass Health is the larger business, with $5.9B of revenue in fiscal 2025 against $5.6B for Option Care Health.
- Option Care Health grew revenue faster (13.0%, against 10.5%).
- Encompass Health turned more of its sales into free cash flow (7.4% FCF margin, against 3.8%).
- Encompass Health earned a higher return on the capital invested in it (15.8%, against 11.4%).
- Investors pay more for each dollar of Option Care Health’s earnings: a P/E of 24.4x against 20.2x for Encompass Health.
| Latest fiscal year | EHC · FY25 | OPCH · FY25 |
|---|---|---|
| Size | ||
| Market cap | $12.4B | $4.9B |
| Revenue | $5.9B | $5.6B |
| Free cash flow | $439M | $217M |
| Net income | $566M | $208M |
| Growth | ||
| Revenue growth | 10.5% | 13.0% |
| 5-year growth | 10.7% | 13.3% |
| Share count change | 0.0% | −5.5% |
| Profitability | ||
| Gross margin | — | 19.3% |
| Operating margin | — | 6.0% |
| Net margin | 9.5% | 3.7% |
| FCF margin | 7.4% | 3.8% |
| Return on capital | 15.8% | 11.4% |
| Return on equity | 25.1% | 15.2% |
| Balance sheet | ||
| Net debt | $2.4B | $928M |
| Net debt / EBITDA | 1.7x | 2.3x |
| Dividends and buybacks | $229M | $310M |
| Valuation & quality | ||
| P/E | 20.2x | 24.4x |
| Piotroski F-score | 8 | 5 |
Revenue
FY16
EHC $3.6B
OPCH $936M
FY17
EHC $3.9B
OPCH $1.8B
FY18
EHC $4.3B
OPCH $1.9B
FY19
EHC $4.6B
OPCH $2.3B
FY20
EHC $3.6B
OPCH $3.0B
FY21
EHC $4.0B
OPCH $3.4B
FY22
EHC $4.3B
OPCH $3.9B
FY23
EHC $4.8B
OPCH $4.3B
FY24
EHC $5.4B
OPCH $5.0B
FY25
EHC $5.9B
OPCH $5.6B
EHC
OPCH
Operating margin
FY16
EHC 16.2%
OPCH −1.2%
FY17
EHC 14.8%
OPCH 1.5%
FY18
EHC 13.0%
OPCH 2.0%
FY19
EHC 13.3%
OPCH −0.0%
FY20
EHC 15.8%
OPCH 3.7%
FY21
EHC 13.9%
OPCH 5.6%
FY22
EHC 12.4%
OPCH 6.1%
FY23
EHC —
OPCH 7.3%
FY24
EHC —
OPCH 6.4%
FY25
EHC —
OPCH 6.0%
EHC
OPCH
Free cash flow
FY16
EHC $463M
OPCH —
FY17
EHC $433M
OPCH $12.9M
FY18
EHC $508M
OPCH −$1.9M
FY19
EHC $263M
OPCH $11.2M
FY20
EHC $312M
OPCH $101M
FY21
EHC $191M
OPCH $183M
FY22
EHC $141M
OPCH $232M
FY23
EHC $268M
OPCH $329M
FY24
EHC $360M
OPCH $288M
FY25
EHC $439M
OPCH $217M
EHC
OPCH
Return on capital
FY16
EHC 10.0%
OPCH −1.3%
FY17
EHC 10.5%
OPCH 2.0%
FY18
EHC 10.6%
OPCH 2.8%
FY19
EHC 11.2%
OPCH −0.0%
FY20
EHC 9.1%
OPCH 4.2%
FY21
EHC 8.4%
OPCH 9.2%
FY22
EHC 8.3%
OPCH 8.2%
FY23
EHC 12.4%
OPCH 10.9%
FY24
EHC 14.0%
OPCH 11.3%
FY25
EHC 15.8%
OPCH 11.4%
EHC
OPCH
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.