Encompass Health vs Ensign Group
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KIRA’s take AI analyst
I put Encompass Health and Ensign Group side by side, using each one’s latest annual report. Here is what stands out:
- Encompass Health is the larger business, with $5.9B of revenue in fiscal 2025 against $5.1B for Ensign Group.
- Ensign Group grew revenue faster (18.7%, against 10.5%).
- Ensign Group earned a higher return on the capital invested in it (19.7%, against 15.8%).
- Investors pay more for each dollar of Ensign Group’s earnings: a P/E of 27.7x against 20.2x for Encompass Health.
Who comes out ahead
Of the 8 measures where higher (or lower) is clearly better, how many each company leads.
Encompass Health
EHC
4/8
Net marginReturn on equityPiotroski F-scoreShare count change
Ensign Group
ENSG
4/8
Revenue growth5-year growthReturn on capitalNet debt / EBITDA
Side by side
Best in the row
| Latest fiscal year | EHC FY25 | ENSG FY25 |
|---|---|---|
| Size | ||
| Market cap | $12.4B | $10.5B |
| Revenue | $5.9B | $5.1B |
| Free cash flow | $439M | — |
| Net income | $566M | $344M |
| Growth | ||
| Revenue growth | 10.5% | 18.7% |
| 5-year growth | 10.7% | 16.1% |
| Share count change | 0.0% | 1.1% |
| Profitability | ||
| Gross margin | — | 20.5% |
| Operating margin | — | 8.4% |
| Net margin | 9.5% | 6.8% |
| FCF margin | 7.4% | — |
| Return on capital | 15.8% | 19.7% |
| Return on equity | 25.1% | 16.9% |
| Balance sheet | ||
| Net debt | $2.4B | −$428M |
| Net debt / EBITDA | 1.7x | −0.8x |
| Dividends and buybacks | $229M | $34.4M |
| Valuation & quality | ||
| P/E | 20.2x | 27.7x |
| 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.