Encompass Health vs Universal Health Services
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KIRA’s take AI analyst
I put Encompass Health and Universal Health Services side by side, using each one’s latest annual report. Here is what stands out:
- Universal Health Services is the larger business, with $17.4B of revenue in fiscal 2025 against $5.9B for Encompass Health, about 2.9 times as much.
- Encompass Health grew revenue faster (10.5%, against 9.7%).
- Encompass Health turned more of its sales into free cash flow (7.4% FCF margin, against 4.9%).
- Encompass Health earned a higher return on the capital invested in it (15.8%, against 13.1%).
- Investors pay more for each dollar of Encompass Health’s earnings: a P/E of 20.2x against 7.6x for Universal Health Services.
Who comes out ahead
Of the 9 measures where higher (or lower) is clearly better, how many each company leads.
Encompass Health
EHC
8/9
Revenue growth5-year growthNet marginFCF marginReturn on capitalReturn on equityPiotroski F-scoreNet debt / EBITDA
Universal Health Services
UHS
1/9
Share count change
Side by side
Best in the row
| Latest fiscal year | EHC FY25 | UHS FY25 |
|---|---|---|
| Size | ||
| Market cap | $12.4B | $11.1B |
| Revenue | $5.9B | $17.4B |
| Free cash flow | $439M | $849M |
| Net income | $566M | $1.5B |
| Growth | ||
| Revenue growth | 10.5% | 9.7% |
| 5-year growth | 10.7% | 8.5% |
| Share count change | 0.0% | −5.1% |
| Profitability | ||
| Gross margin | — | — |
| Operating margin | — | 11.5% |
| Net margin | 9.5% | 8.6% |
| FCF margin | 7.4% | 4.9% |
| Return on capital | 15.8% | 13.1% |
| Return on equity | 25.1% | 21.4% |
| Balance sheet | ||
| Net debt | $2.4B | $4.7B |
| Net debt / EBITDA | 1.7x | 1.8x |
| Dividends and buybacks | $229M | $1.0B |
| Valuation & quality | ||
| P/E | 20.2x | 7.6x |
| Piotroski F-score | 8 | 6 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
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.