Encompass Health vs Ensign Group
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The short version
- 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 27.5x against 20.2x for Encompass Health.
| Latest fiscal year | EHC · FY25 | ENSG · FY25 |
|---|---|---|
| Size | ||
| Market cap | $12.4B | $10.4B |
| 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 | 27.5x |
| Piotroski F-score | 8 | 6 |
Revenue
FY16
EHC $3.6B
ENSG $1.7B
FY17
EHC $3.9B
ENSG $1.6B
FY18
EHC $4.3B
ENSG $1.8B
FY19
EHC $4.6B
ENSG $2.0B
FY20
EHC $3.6B
ENSG $2.4B
FY21
EHC $4.0B
ENSG $2.6B
FY22
EHC $4.3B
ENSG $3.0B
FY23
EHC $4.8B
ENSG $3.7B
FY24
EHC $5.4B
ENSG $4.3B
FY25
EHC $5.9B
ENSG $5.1B
EHC
ENSG
Operating margin
FY16
EHC 16.2%
ENSG 5.6%
FY17
EHC 14.8%
ENSG 2.7%
FY18
EHC 13.0%
ENSG 4.8%
FY19
EHC 13.3%
ENSG 6.3%
FY20
EHC 15.8%
ENSG 9.3%
FY21
EHC 13.9%
ENSG 9.9%
FY22
EHC 12.4%
ENSG 9.8%
FY23
EHC —
ENSG 6.9%
FY24
EHC —
ENSG 8.4%
FY25
EHC —
ENSG 8.4%
EHC
ENSG
Free cash flow
FY16
EHC $463M
ENSG $8.2M
FY17
EHC $433M
ENSG $25.5M
FY18
EHC $508M
ENSG $159M
FY19
EHC $263M
ENSG $121M
FY20
EHC $312M
ENSG —
FY21
EHC $191M
ENSG —
FY22
EHC $141M
ENSG —
FY23
EHC $268M
ENSG —
FY24
EHC $360M
ENSG —
FY25
EHC $439M
ENSG —
EHC
ENSG
Return on capital
FY16
EHC 10.0%
ENSG 9.8%
FY17
EHC 10.5%
ENSG 3.3%
FY18
EHC 10.6%
ENSG 8.9%
FY19
EHC 11.2%
ENSG 11.9%
FY20
EHC 9.1%
ENSG 22.0%
FY21
EHC 8.4%
ENSG 25.1%
FY22
EHC 8.3%
ENSG 23.3%
FY23
EHC 12.4%
ENSG 17.9%
FY24
EHC 14.0%
ENSG 21.4%
FY25
EHC 15.8%
ENSG 19.7%
EHC
ENSG
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.