Encompass Health Corporation vs TENET HEALTHCARE CORP, two Medical Care stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Neither multiple is about growth so much as persistence: Tenet at 9.8 times earnings is priced for hospital margins to fade from their post-pandemic highs, Encompass at 16.9 for rehabilitation demand to compound as demographics promise. Tenet's current numbers dominate, a 24.1% operating margin, a 39.5% return on equity (geared, 1.97 turns), and a 20.4% free-cash yield that dwarfs Encompass' construction-negative flow. Encompass answers with cleaner leverage, 0.78 turns, and a structural story no cycle owns. Seven turns of multiple separate earnings the market distrusts from earnings it believes in; Tenet's page pays you enormously to share the distrust.
Comparison updated 2026-07-10.
| Metric | EHC | THC |
|---|---|---|
| Price | $101.30 | $187.50 |
| Market cap | $10.2B | $16.4B |
| Sector | Medical Care | Medical Care |
| Stage | Mature | Mature |
| Implied growth (priced in) | +8.8% | — |
| P/E | 16.9 | 9.8 |
| P/B | 3.08 | 2.45 |
| P/S | 1.68 | 0.77 |
| EV/EBITDA | 37.7 | 5.6 |
| Revenue growth | +10.1% | +4.5% |
| Operating margin | — | 24.1% |
| Net margin | 10.0% | 12.4% |
| Return on equity | 18.4% | 39.5% |
| Return on assets | 8.3% | 8.5% |
| Return on invested capital | — | 15.5% |
| FCF yield | -7.2% | 20.4% |
| Dividend yield | 0.7% | — |
| Debt / equity | 0.78 | 1.97 |
| Current ratio | 1.17 | 1.36 |
| Altman Z (solvency) | 2.40 | 1.58 |
| Piotroski F (quality) | 5 / 9 | 7 / 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.