Encompass Health Corporation vs NATIONAL HEALTHCARE CORP, two Medical Care stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Encompass at 16.9 times earnings is priced as the structurally advantaged operator, inpatient rehabilitation hospitals with an 18.4% return on equity; National HealthCare at 25.5 times as the sleepy skilled-nursing incumbent earning 11.3%. The premium sits on the slower horse, and cash explains some of it: Encompass' free-cash figure runs negative 7.2%, capacity expansion consuming the year's flow, while NHC yields 5.3% debt-free with a 1.3% dividend. Net margins favor Encompass, 10% against 8.1%. The pair prices growth-by-construction against yield-in-place; the multiple ordering says the market currently pays for the standing still.
Comparison updated 2026-07-10.
| Metric | EHC | NHC |
|---|---|---|
| Price | $101.30 | $200.71 |
| Market cap | $10.2B | $3.2B |
| Sector | Medical Care | Medical Care |
| Stage | Mature | Mature |
| Implied growth (priced in) | +8.8% | +13.2% |
| P/E | 16.9 | 25.5 |
| P/B | 3.08 | 2.89 |
| P/S | 1.68 | 2.07 |
| EV/EBITDA | 37.7 | 17.6 |
| Revenue growth | +10.1% | +11.0% |
| Operating margin | — | 8.4% |
| Net margin | 10.0% | 8.1% |
| Return on equity | 18.4% | 11.3% |
| Return on assets | 8.3% | 8.1% |
| Return on invested capital | — | 9.5% |
| FCF yield | -7.2% | 5.3% |
| Dividend yield | 0.7% | 1.3% |
| Debt / equity | 0.78 | 0.00 |
| Current ratio | 1.17 | 1.86 |
| Altman Z (solvency) | 2.40 | 6.47 |
| Piotroski F (quality) | 5 / 9 | 6 / 9 |
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The stronger value is highlighted per metric where one is strictly better on that single number; it is not an overall verdict on either company. For informational and research purposes only. Not investment advice. Not a recommendation to buy, sell, or hold any security. boothcheck is not a registered investment adviser. Past performance does not guarantee future results.