Encompass Health vs Universal Health Services
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The short version
- 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.
| Latest fiscal year | EHC · FY25 | UHS · FY25 |
|---|---|---|
| Size | ||
| Market cap | $12.4B | $11.2B |
| 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 |
Revenue
FY16
EHC $3.6B
UHS $9.8B
FY17
EHC $3.9B
UHS $10.4B
FY18
EHC $4.3B
UHS $10.8B
FY19
EHC $4.6B
UHS $11.4B
FY20
EHC $3.6B
UHS $11.6B
FY21
EHC $4.0B
UHS $12.6B
FY22
EHC $4.3B
UHS $13.4B
FY23
EHC $4.8B
UHS $14.3B
FY24
EHC $5.4B
UHS $15.8B
FY25
EHC $5.9B
UHS $17.4B
EHC
UHS
Operating margin
FY16
EHC 16.2%
UHS 13.1%
FY17
EHC 14.8%
UHS 12.3%
FY18
EHC 13.0%
UHS 10.9%
FY19
EHC 13.3%
UHS 10.7%
FY20
EHC 15.8%
UHS 11.8%
FY21
EHC 13.9%
UHS 10.8%
FY22
EHC 12.4%
UHS 7.5%
FY23
EHC —
UHS 8.2%
FY24
EHC —
UHS 10.6%
FY25
EHC —
UHS 11.5%
EHC
UHS
Free cash flow
FY16
EHC $463M
UHS $814M
FY17
EHC $433M
UHS $690M
FY18
EHC $508M
UHS $610M
FY19
EHC $263M
UHS $804M
FY20
EHC $312M
UHS $1.6B
FY21
EHC $191M
UHS $28.0M
FY22
EHC $141M
UHS $262M
FY23
EHC $268M
UHS $525M
FY24
EHC $360M
UHS $1.1B
FY25
EHC $439M
UHS $849M
EHC
UHS
Return on capital
FY16
EHC 10.0%
UHS 10.1%
FY17
EHC 10.5%
UHS 9.8%
FY18
EHC 10.6%
UHS 9.9%
FY19
EHC 11.2%
UHS 10.0%
FY20
EHC 9.1%
UHS 11.1%
FY21
EHC 8.4%
UHS 10.7%
FY22
EHC 8.3%
UHS 7.2%
FY23
EHC 12.4%
UHS 8.2%
FY24
EHC 14.0%
UHS 11.7%
FY25
EHC 15.8%
UHS 13.1%
EHC
UHS
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.