Encompass Health Corporation vs Sotera Health Co, two Medical Care stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Where EHC and SHC diverge most: on implied growth (priced in), EHC reads -1.6% and SHC reads +21.1%; on fcf yield, EHC reads -6.6% and SHC reads 1.9%. The rest of the comparable metrics sit closer together. On valuation, today's EHC price has a different growth bar priced in than SHC (-1.6% implied for EHC vs +21.1% for SHC); the higher figure is the steeper assumption to clear, not a better or worse stock. What EHC's price implies is a bet that sits within the historical range (whole-company basis). What SHC's price implies is a bet that sits within the historical range (whole-company basis). The bull and bear cases for each are in their full reports below.
| Metric | EHC | SHC |
|---|---|---|
| Price | $111.04 | $17.87 |
| Market cap | $11.2B | $5.1B |
| Sector | Medical Care | Medical Care |
| Stage | Mature | Mature |
| Implied growth (priced in) | -1.6% | +21.1% |
| P/E | 18.5 | 43.6 |
| P/B | 3.38 | 8.26 |
| P/S | 1.84 | 4.32 |
| EV/EBITDA | 40.6 | 276.8 |
| Revenue growth | +10.1% | +7.5% |
| Gross margin | — | 52.5% |
| Net margin | 10.0% | 9.9% |
| Return on equity | 18.4% | 18.9% |
| Return on assets | 8.3% | 3.6% |
| FCF yield | -6.6% | 1.9% |
| Dividend yield | 0.7% | — |
| Debt / equity | 0.78 | 3.46 |
| Current ratio | 1.17 | 2.82 |
| Altman Z (solvency) | 2.55 | 1.47 |
| Piotroski F (quality) | 5 / 9 | 4 / 9 |
Each week boothcheck ranks the stocks whose prices are betting on the most. Read the most stretched bets archive →
boothcheck is also on Android. Get the app on Google Play →
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.