Encompass Health or HCA Healthcare: Which Stock Has More Upside?
HCA Healthcare surged 7.1% during the past Day. You may be tempted to buy more, or may want to reduce your exposure. But there is an entirely different perspective you might be missing. Is there a better alternative? Turns out, its peer Encompass Health gives you more. Encompass Health (EHC) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs HCA Healthcare (HCA) stock, suggesting you may be better off investing in EHC
- EHC’s quarterly revenue growth was 9.4%, vs. HCA’s 6.4%.
- In addition, its Last 12 Months revenue growth came in at 11.1%, ahead of HCA’s 6.4%.
- EHC leads on profitability over both periods – LTM margin of 17.3% and 3-year average of 16.1%.
These differences become even clearer when you look at the financials side by side. The table highlights how HCA’s fundamentals stack up against those of EHC on growth, margins, momentum, and valuation multiples.
Valuation & Performance Overview
| HCA | EHC | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 10.9 | 9.5 | EHC |
| Revenue Growth | |||
| Last Quarter | 6.4% | 9.4% | EHC |
| Last 12 Months | 6.4% | 11.1% | EHC |
| Last 3 Year Average | 6.6% | 10.9% | EHC |
| Operating Margins | |||
| Last 12 Months | 15.2% | 17.3% | EHC |
| Last 3 Year Average | 15.0% | 16.1% | EHC |
| Momentum | |||
| Last 3 Year Return | 103.4% | 57.9% | HCA |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: HCA Revenue Comparison | EHC Revenue Comparison
See more margin details: HCA Operating Income Comparison | EHC Operating Income Comparison
See detailed fundamentals on Buy or Sell EHC Stock and Buy or Sell HCA Stock. Below we compare market return and related metrics across years.
Historical Market Performance
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| HCA Return | 58% | -6% | 14% | 12% | 57% | 1% | 200% | <=== | |
| EHC Return | -20% | 17% | 13% | 39% | 16% | -8% | 56% | ||
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 2% | 85% | ||
| Monthly Win Rates [3] | |||||||||
| HCA Win Rate | 67% | 50% | 58% | 58% | 67% | 100% | 67% | ||
| EHC Win Rate | 50% | 50% | 50% | 83% | 75% | 0% | 51% | ||
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 100% | 71% | <=== | |
| Max Drawdowns [4] | |||||||||
| HCA Max Drawdown | -5% | -35% | -7% | 0% | -1% | -1% | -8% | ||
| EHC Max Drawdown | -31% | -17% | -14% | 0% | -1% | -8% | -12% | ||
| S&P 500 Max Drawdown | -1% | -25% | -1% | -2% | -15% | -1% | -7% | <=== | |
[1] Cumulative total returns since the beginning of 2021
[2] 2026 data is for the year up to 1/27/2026 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read EHC Dip Buyer Analyses and HCA Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.
Still not sure about HCA or EHC? Consider portfolio approach.
Portfolios Over Individual Stock Picks
Single stocks swing wildly but staying invested matters. A well built portfolio keeps you invested, captures upside and softens the blows from individual stocks
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.