CAH vs. EHC: Cardinal Health vs. Encompass Health Stock Comparison
How do Cardinal Health (CAH) and Encompass Health (EHC) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.
Company Profile
Cardinal Health (CAH) and Encompass Health (EHC) both belong to the Health Care Providers & Services industry, though CAH is classified under Health Care Distributors while EHC falls under Health Care Facilities.
| Profile Item | CAH | EHC |
|---|---|---|
| Name | Cardinal Health, Inc. | Encompass Health Corporation |
| Country/Region | United States | United States |
| GICS Sector | Health Care | Health Care |
| GICS Industry Group | Health Care Equipment & Services | Health Care Equipment & Services |
| GICS Industry | Health Care Providers & Services | Health Care Providers & Services |
| GICS Sub-Industry | Health Care Distributors | Health Care Facilities |
| Market Capitalization | 62.80 billion USD | 13.50 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | NYSE |
| Listing Date | August 4, 1983 | September 24, 1986 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | CAH | EHC |
|---|---|---|
| Total Return (1Y) | 35.44% | 22.16% |
| Total Return (3Y, Annualized) | 40.52% | 30.96% |
| Total Return (5Y, Annualized) | 43.73% | 23.55% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | CAH | EHC |
|---|---|---|
| Volatility (1Y, Annualized) | 25.91% | 30.54% |
| Beta (5Y) | 0.49 | 0.82 |
| Max Drawdown (5Y) | -20.95% | -27.33% |
| Avg. Volume (3M) | 1.77M | 996.79K |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | CAH | EHC |
|---|---|---|
| Sharpe Ratio (1Y) | 1.20 | 0.59 |
| Sortino Ratio (1Y) | 1.90 | 1.08 |
Profitability
ROE (TTM)
Capital efficiency shows on one side only: Encompass Health (EHC) earns 25.11% on shareholders’ equity, ranked against its industry; Cardinal Health (CAH) has no ROE this period.
CAH
Health Care Equipment & Services industry group
--
- Max
- 47.61%
- Q3
- 14.36%
- Median
- 5.45%
- Q1
- -10.67%
- Min
- -47.01%
- CAH
- --
EHC
Health Care Equipment & Services industry group
25.11%
- Max
- 47.61%
- EHC
- 25.11%
- Q3
- 14.36%
- Median
- 5.45%
- Q1
- -10.67%
- Min
- -47.01%
Net Margin (TTM)
Encompass Health (EHC) at 10.17% retains a top-quartile share of revenue as profit, ahead of Cardinal Health (CAH) at 0.71%, which keeps about the industry-typical share.
CAH
Health Care Equipment & Services industry group
0.71%
- Max
- 29.35%
- Q3
- 9.33%
- Median
- 2.18%
- CAH
- 0.71%
- Q1
- -6.29%
- Min
- -28.46%
EHC
Health Care Equipment & Services industry group
10.17%
- Max
- 29.35%
- EHC
- 10.17%
- Q3
- 9.33%
- Median
- 2.18%
- Q1
- -6.29%
- Min
- -28.46%
Operating Margin (TTM)
Encompass Health (EHC) at 18.07% operates in the top operating margin quartile, ahead of Cardinal Health (CAH) at 1.34%, which runs around its industry’s norm.
CAH
Health Care Equipment & Services industry group
1.34%
- Max
- 35.43%
- Q3
- 14.14%
- Median
- 6.81%
- CAH
- 1.34%
- Q1
- -0.28%
- Min
- -16.29%
EHC
Health Care Equipment & Services industry group
18.07%
- Max
- 35.43%
- EHC
- 18.07%
- Q3
- 14.14%
- Median
- 6.81%
- Q1
- -0.28%
- Min
- -16.29%
Profitability Metrics
| Metric | CAH | EHC |
|---|---|---|
| ROE (TTM) | -- | 25.11% |
| ROA (TTM) | 3.72% | 10.08% |
| Net Margin (TTM) | 0.71% | 10.17% |
| Operating Margin (TTM) | 1.34% | 18.07% |
| Gross Margin (TTM) | 3.90% | 44.15% |
Growth
Revenue Growth
Both Cardinal Health (CAH) at 14.23% and Encompass Health (EHC) at 10.46% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.
EPS Growth
Both Cardinal Health (CAH) at 12.09% and Encompass Health (EHC) at 24.22% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.
Growth Metrics
| Metric | CAH | EHC |
|---|---|---|
| Revenue Growth (YoY) | 14.23% | 10.46% |
| Revenue Growth (3Y CAGR) | 7.44% | 10.92% |
| EPS Growth (YoY) | 12.09% | 24.22% |
| EPS Growth (3Y CAGR) | 93.37% | 27.07% |
Financial Strength
Current Ratio (MRQ)
Both Cardinal Health (CAH) at 0.89 and Encompass Health (EHC) at 1.09 run current ratio in the tighter-liquidity quartile of industry peers, leaving thinner cushions against current liabilities than typical competitors.
CAH
Health Care Equipment & Services industry group
0.89
- Max
- 7.59
- Q3
- 4.00
- Median
- 1.98
- Q1
- 1.37
- CAH
- 0.89
- Min
- 0.30
EHC
Health Care Equipment & Services industry group
1.09
- Max
- 7.59
- Q3
- 4.00
- Median
- 1.98
- Q1
- 1.37
- EHC
- 1.09
- Min
- 0.30
Debt / Equity (MRQ)
Only one side’s leverage can be read here: Encompass Health (EHC) carries debt-to-equity ratio of 0.79 against its industry range, while Cardinal Health (CAH) reports no figure this period.
CAH
Health Care Equipment & Services industry group
--
- Max
- 1.88
- Q3
- 0.91
- Median
- 0.58
- Q1
- 0.16
- Min
- 0.00
- CAH
- --
EHC
Health Care Equipment & Services industry group
0.79
- Max
- 1.88
- Q3
- 0.91
- EHC
- 0.79
- Median
- 0.58
- Q1
- 0.16
- Min
- 0.00
Financial Strength Metrics
| Metric | CAH | EHC |
|---|---|---|
| Current Ratio (MRQ) | 0.89 | 1.09 |
| Debt / Equity (MRQ) | -- | 0.79 |
| Net Debt / EBITDA | 0.81 | 1.79 |
Dividends
Dividend Yield (TTM)
Both Cardinal Health (CAH) at 0.77% and Encompass Health (EHC) at 0.55% yield above their industries’ entire benchmark ranges — high enough that dividend safety, not income, becomes the first question.
CAH
Health Care Equipment & Services industry group
0.77%
- CAH
- 0.77%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
EHC
Health Care Equipment & Services industry group
0.55%
- EHC
- 0.55%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Both Cardinal Health (CAH) at 26.56% and Encompass Health (EHC) at 12.48% pay out more of their earnings than any of their industry peers — the thinnest cover in their groups, so dividend headroom deserves attention.
CAH
Health Care Equipment & Services industry group
26.56%
- CAH
- 26.56%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
EHC
Health Care Equipment & Services industry group
12.48%
- EHC
- 12.48%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | CAH | EHC |
|---|---|---|
| Dividend Yield (TTM) | 0.77% | 0.55% |
| Dividend Payout Ratio (TTM) | 26.56% | 12.48% |
Valuation
P/E Ratio (TTM)
Both Cardinal Health (CAH) at 35.15 and Encompass Health (EHC) at 22.01 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.
CAH
Health Care Equipment & Services industry group
35.15
- Max
- 80.41
- Q3
- 47.62
- CAH
- 35.15
- Median
- 29.93
- Q1
- 21.19
- Min
- 4.21
EHC
Health Care Equipment & Services industry group
22.01
- Max
- 80.41
- Q3
- 47.62
- Median
- 29.93
- EHC
- 22.01
- Q1
- 21.19
- Min
- 4.21
P/S Ratio (TTM)
Cardinal Health (CAH) at 0.24 sits in the cheaper P/S ratio quartile while Encompass Health (EHC) at 2.13 prices around its industry’s middle — CAH costs less per dollar of sales, though read it alongside growth and margins.
CAH
Health Care Equipment & Services industry group
0.24
- Max
- 8.80
- Q3
- 4.32
- Median
- 2.13
- Q1
- 1.10
- CAH
- 0.24
- Min
- 0.03
EHC
Health Care Equipment & Services industry group
2.13
- Max
- 8.80
- Q3
- 4.32
- EHC
- 2.13
- Median
- 2.13
- Q1
- 1.10
- Min
- 0.03
P/B Ratio (MRQ)
Cardinal Health (CAH) reports a negative P/B ratio of -20.84, meaning negative book equity — the multiple itself is not meaningful for valuation. Meanwhile Encompass Health (EHC) reports 5.04, ranking against industry peers normally.
CAH
Health Care Equipment & Services industry group
-20.84
- Max
- 11.68
- Q3
- 6.12
- Median
- 3.00
- Q1
- 1.73
- Min
- -1.31
- CAH
- -20.84
EHC
Health Care Equipment & Services industry group
5.04
- Max
- 11.68
- Q3
- 6.12
- EHC
- 5.04
- Median
- 3.00
- Q1
- 1.73
- Min
- -1.31
Valuation Metrics
| Metric | CAH | EHC |
|---|---|---|
| P/E Ratio (TTM) | 35.15 | 22.01 |
| P/S Ratio (TTM) | 0.24 | 2.13 |
| P/B Ratio (MRQ) | -20.84 | 5.04 |
| Free Cash Flow Yield (TTM) | 7.99% | 1.97% |