Encompass Health Corporation vs UNIVERSAL HEALTH SERVICES, INC., two Medical Care stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
The margin gap is modest, Universal Health's 11.2% operating against Encompass' net-margin-implied similar range, 10% at the bottom line against 8.6%, but the multiple gap is not: 16.9 times for Encompass against 6.1 for UHS, nearly triple the price per dollar for the rehabilitation specialist over the behavioral-and-acute generalist. Returns land close, 18.4% and 20.2% on equity, ordinary leverage at both. Cash decides the character: UHS yields 10.2% in free cash, Encompass runs negative on expansion capex. The market pays for Encompass' focused growth story and discounts UHS' breadth as ex-growth; the returns tables, nearly identical, suggest the businesses disagree less than their prices do.
Comparison updated 2026-07-10.
| Metric | EHC | UHS |
|---|---|---|
| Price | $101.30 | $145.68 |
| Market cap | $10.2B | $9.0B |
| Sector | Medical Care | Medical Care |
| Stage | Mature | Mature |
| Implied growth (priced in) | +8.8% | — |
| P/E | 16.9 | 6.1 |
| P/B | 3.08 | 1.19 |
| P/S | 1.68 | 0.51 |
| EV/EBITDA | 37.7 | 5.4 |
| Revenue growth | +10.1% | +10.4% |
| Operating margin | — | 11.2% |
| Net margin | 10.0% | 8.6% |
| Return on equity | 18.4% | 20.2% |
| Return on assets | 8.3% | 9.7% |
| Return on invested capital | — | 12.0% |
| FCF yield | -7.2% | 10.2% |
| Dividend yield | 0.7% | 0.6% |
| Debt / equity | 0.78 | 0.72 |
| Current ratio | 1.17 | 1.08 |
| Altman Z (solvency) | 2.40 | 7.26 |
| 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.