ACHC vs. EHC: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ACHC and EHC, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
EHC’s market capitalization of 12.00 billion USD is significantly greater than ACHC’s 2.15 billion USD, highlighting its more substantial market valuation.
With betas of 0.94 for ACHC and 0.77 for EHC, both stocks show similar sensitivity to overall market movements.
| Symbol | ACHC | EHC |
|---|---|---|
| Company Name | Acadia Healthcare Company, Inc. | Encompass Health Corporation |
| Country | US | US |
| Sector | Healthcare | Healthcare |
| Industry | Medical - Care Facilities | Medical - Care Facilities |
| CEO | Christopher Howal Hunter | Mark J. Tarr |
| Price | 23.36 USD | 119.04 USD |
| Market Cap | 2.15 billion USD | 12.00 billion USD |
| Beta | 0.94 | 0.77 |
| Exchange | NASDAQ | NYSE |
| IPO Date | March 4, 1994 | September 24, 1986 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ACHC and EHC by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
ACHC
6.20%
Medical - Care Facilities Industry
- Max
- 37.16%
- Q3
- 13.80%
- Median
- 6.51%
- Q1
- -11.55%
- Min
- -43.55%
ACHC’s Return on Equity of 6.20% is on par with the norm for the Medical - Care Facilities industry, indicating its profitability relative to shareholder equity is typical for the sector.
EHC
24.66%
Medical - Care Facilities Industry
- Max
- 37.16%
- Q3
- 13.80%
- Median
- 6.51%
- Q1
- -11.55%
- Min
- -43.55%
In the upper quartile for the Medical - Care Facilities industry, EHC’s Return on Equity of 24.66% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Return on Invested Capital
ACHC
5.41%
Medical - Care Facilities Industry
- Max
- 20.36%
- Q3
- 9.05%
- Median
- 5.41%
- Q1
- -1.08%
- Min
- -9.00%
ACHC’s Return on Invested Capital of 5.41% is in line with the norm for the Medical - Care Facilities industry, reflecting a standard level of efficiency in generating profits from its capital base.
EHC
12.58%
Medical - Care Facilities Industry
- Max
- 20.36%
- Q3
- 9.05%
- Median
- 5.41%
- Q1
- -1.08%
- Min
- -9.00%
In the upper quartile for the Medical - Care Facilities industry, EHC’s Return on Invested Capital of 12.58% signifies a highly effective use of its capital to generate profits when compared to its peers.
Net Profit Margin
ACHC
5.94%
Medical - Care Facilities Industry
- Max
- 12.40%
- Q3
- 6.23%
- Median
- 3.17%
- Q1
- -3.80%
- Min
- -13.43%
ACHC’s Net Profit Margin of 5.94% is aligned with the median group of its peers in the Medical - Care Facilities industry. This indicates its ability to convert revenue into profit is typical for the sector.
EHC
8.97%
Medical - Care Facilities Industry
- Max
- 12.40%
- Q3
- 6.23%
- Median
- 3.17%
- Q1
- -3.80%
- Min
- -13.43%
A Net Profit Margin of 8.97% places EHC in the upper quartile for the Medical - Care Facilities industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin
ACHC
12.89%
Medical - Care Facilities Industry
- Max
- 17.86%
- Q3
- 10.40%
- Median
- 6.40%
- Q1
- 0.40%
- Min
- -10.86%
An Operating Profit Margin of 12.89% places ACHC in the upper quartile for the Medical - Care Facilities industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
EHC
16.76%
Medical - Care Facilities Industry
- Max
- 17.86%
- Q3
- 10.40%
- Median
- 6.40%
- Q1
- 0.40%
- Min
- -10.86%
An Operating Profit Margin of 16.76% places EHC in the upper quartile for the Medical - Care Facilities industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | ACHC | EHC |
|---|---|---|
| Return on Equity (TTM) | 6.20% | 24.66% |
| Return on Assets (TTM) | 3.05% | 7.45% |
| Return on Invested Capital (TTM) | 5.41% | 12.58% |
| Net Profit Margin (TTM) | 5.94% | 8.97% |
| Operating Profit Margin (TTM) | 12.89% | 16.76% |
| Gross Profit Margin (TTM) | 62.53% | 36.45% |
Financial Strength
Current Ratio
ACHC
1.35
Medical - Care Facilities Industry
- Max
- 2.67
- Q3
- 1.76
- Median
- 1.35
- Q1
- 1.12
- Min
- 0.57
ACHC’s Current Ratio of 1.35 aligns with the median group of the Medical - Care Facilities industry, indicating that its short-term liquidity is in line with its sector peers.
EHC
1.06
Medical - Care Facilities Industry
- Max
- 2.67
- Q3
- 1.76
- Median
- 1.35
- Q1
- 1.12
- Min
- 0.57
EHC’s Current Ratio of 1.06 falls into the lower quartile for the Medical - Care Facilities industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio
ACHC
0.76
Medical - Care Facilities Industry
- Max
- 2.55
- Q3
- 1.40
- Median
- 0.76
- Q1
- 0.26
- Min
- 0.01
ACHC’s Debt-to-Equity Ratio of 0.76 is typical for the Medical - Care Facilities industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
EHC
1.25
Medical - Care Facilities Industry
- Max
- 2.55
- Q3
- 1.40
- Median
- 0.76
- Q1
- 0.26
- Min
- 0.01
EHC’s Debt-to-Equity Ratio of 1.25 is typical for the Medical - Care Facilities industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio
ACHC
3.44
Medical - Care Facilities Industry
- Max
- 16.29
- Q3
- 6.85
- Median
- 2.93
- Q1
- 0.35
- Min
- -7.11
ACHC’s Interest Coverage Ratio of 3.44 is positioned comfortably within the norm for the Medical - Care Facilities industry, indicating a standard and healthy capacity to cover its interest payments.
EHC
6.90
Medical - Care Facilities Industry
- Max
- 16.29
- Q3
- 6.85
- Median
- 2.93
- Q1
- 0.35
- Min
- -7.11
EHC’s Interest Coverage Ratio of 6.90 is in the upper quartile for the Medical - Care Facilities industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | ACHC | EHC |
|---|---|---|
| Current Ratio (TTM) | 1.35 | 1.06 |
| Quick Ratio (TTM) | 1.35 | 1.06 |
| Debt-to-Equity Ratio (TTM) | 0.76 | 1.25 |
| Debt-to-Asset Ratio (TTM) | 0.38 | 0.41 |
| Net Debt-to-EBITDA Ratio (TTM) | 4.17 | 2.09 |
| Interest Coverage Ratio (TTM) | 3.44 | 6.90 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ACHC and EHC. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
ACHC
0.00%
Medical - Care Facilities Industry
- Max
- 2.79%
- Q3
- 0.08%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ACHC currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
EHC
0.57%
Medical - Care Facilities Industry
- Max
- 2.79%
- Q3
- 0.08%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 0.57%, EHC offers a more attractive income stream than most of its peers in the Medical - Care Facilities industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio
ACHC
0.00%
Medical - Care Facilities Industry
- Max
- 56.48%
- Q3
- 4.48%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ACHC has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
EHC
13.12%
Medical - Care Facilities Industry
- Max
- 56.48%
- Q3
- 4.48%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
EHC’s Dividend Payout Ratio of 13.12% is in the upper quartile for the Medical - Care Facilities industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | ACHC | EHC |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.57% |
| Dividend Payout Ratio (TTM) | 0.00% | 13.12% |
Valuation
Price-to-Earnings Ratio
ACHC
11.41
Medical - Care Facilities Industry
- Max
- 40.40
- Q3
- 28.24
- Median
- 24.89
- Q1
- 13.53
- Min
- 8.53
In the lower quartile for the Medical - Care Facilities industry, ACHC’s P/E Ratio of 11.41 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
EHC
24.18
Medical - Care Facilities Industry
- Max
- 40.40
- Q3
- 28.24
- Median
- 24.89
- Q1
- 13.53
- Min
- 8.53
EHC’s P/E Ratio of 24.18 is within the middle range for the Medical - Care Facilities industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Forward P/E to Growth Ratio
ACHC
0.92
Medical - Care Facilities Industry
- Max
- 4.23
- Q3
- 3.06
- Median
- 1.16
- Q1
- 0.77
- Min
- 0.04
ACHC’s Forward PEG Ratio of 0.92 is within the middle range of its peers in the Medical - Care Facilities industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
EHC
4.12
Medical - Care Facilities Industry
- Max
- 4.23
- Q3
- 3.06
- Median
- 1.16
- Q1
- 0.77
- Min
- 0.04
A Forward PEG Ratio of 4.12 places EHC in the upper quartile for the Medical - Care Facilities industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.
Price-to-Sales Ratio
ACHC
0.68
Medical - Care Facilities Industry
- Max
- 2.38
- Q3
- 1.50
- Median
- 0.79
- Q1
- 0.49
- Min
- 0.04
ACHC’s P/S Ratio of 0.68 aligns with the market consensus for the Medical - Care Facilities industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
EHC
2.18
Medical - Care Facilities Industry
- Max
- 2.38
- Q3
- 1.50
- Median
- 0.79
- Q1
- 0.49
- Min
- 0.04
EHC’s P/S Ratio of 2.18 is in the upper echelon for the Medical - Care Facilities industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio
ACHC
0.70
Medical - Care Facilities Industry
- Max
- 7.73
- Q3
- 4.07
- Median
- 2.16
- Q1
- 1.44
- Min
- 0.66
ACHC’s P/B Ratio of 0.70 is in the lower quartile for the Medical - Care Facilities industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
EHC
5.54
Medical - Care Facilities Industry
- Max
- 7.73
- Q3
- 4.07
- Median
- 2.16
- Q1
- 1.44
- Min
- 0.66
EHC’s P/B Ratio of 5.54 is in the upper tier for the Medical - Care Facilities industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
Valuation at a Glance
| Symbol | ACHC | EHC |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 11.41 | 24.18 |
| Forward PEG Ratio (TTM) | 0.92 | 4.12 |
| Price-to-Sales Ratio (P/S, TTM) | 0.68 | 2.18 |
| Price-to-Book Ratio (P/B, TTM) | 0.70 | 5.54 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -25.16 | 31.05 |
| EV-to-EBITDA (TTM) | 8.18 | 11.71 |
| EV-to-Sales (TTM) | 1.39 | 2.65 |