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EHC vs. LH: Encompass Health vs. Labcorp Stock Comparison

How do Encompass Health (EHC) and Labcorp (LH) 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

Encompass Health (EHC) and Labcorp (LH) both belong to the Health Care Providers & Services industry, though EHC is classified under Health Care Facilities while LH falls under Health Care Services.

Company profile comparison for Encompass Health (EHC) and Labcorp (LH)
Profile ItemEHCLH
NameEncompass Health CorporationLabcorp Holdings Inc.
Country/RegionUnited StatesUnited States
GICS SectorHealth CareHealth Care
GICS Industry GroupHealth Care Equipment & ServicesHealth Care Equipment & Services
GICS IndustryHealth Care Providers & ServicesHealth Care Providers & Services
GICS Sub-IndustryHealth Care FacilitiesHealth Care Services
Market Capitalization13.50 billion USD29.77 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateSeptember 24, 1986March 29, 1990
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

EHC
LH
GSPC
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Encompass Health (EHC) vs. Labcorp (LH), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Encompass Health (EHC) and Labcorp (LH). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Encompass Health (EHC) and Labcorp (LH). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Encompass Health (EHC) and Labcorp (LH)
MetricEHCLH
Total Return (1Y)22.16%48.62%
Total Return (3Y, Annualized)30.96%23.39%
Total Return (5Y, Annualized)23.55%10.54%

Risk Profile

Drawdown History

EHC
LH
GSPC
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Encompass Health (EHC) vs. Labcorp (LH), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Encompass Health (EHC) and Labcorp (LH). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Encompass Health (EHC) and Labcorp (LH)
MetricEHCLH
Volatility (1Y, Annualized)30.54%24.36%
Beta (5Y)0.820.85
Max Drawdown (5Y)-27.33%-34.61%
Avg. Volume (3M)996.79K721.05K

Risk-Adjusted Performance

Risk-Return Positioning

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EHC and LH are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Encompass Health (EHC) and Labcorp (LH)
MetricEHCLH
Sharpe Ratio (1Y)0.591.82
Sortino Ratio (1Y)1.082.99

Profitability

ROE (TTM)

Encompass Health (EHC) at 25.11% sits in the top ROE quartile, while Labcorp (LH) at 11.44% is closer to the peer norm — stronger capital efficiency for EHC.

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%

LH

Health Care Equipment & Services industry group

11.44%

Max
47.61%
Q3
14.36%
LH
11.44%
Median
5.45%
Q1
-10.67%
Min
-47.01%
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Encompass Health (EHC) vs. Labcorp (LH): A comparison of their ROE against the Health Care Equipment & Services industry group benchmark.

Net Margin (TTM)

Encompass Health (EHC) at 10.17% retains a top-quartile share of revenue as profit, ahead of Labcorp (LH) at 6.88%, which keeps about the industry-typical share.

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%

LH

Health Care Equipment & Services industry group

6.88%

Max
29.35%
Q3
9.33%
LH
6.88%
Median
2.18%
Q1
-6.29%
Min
-28.46%
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Encompass Health (EHC) vs. Labcorp (LH): A comparison of their net margin against the Health Care Equipment & Services industry group benchmark.

Operating Margin (TTM)

Encompass Health (EHC) at 18.07% operates in the top operating margin quartile, ahead of Labcorp (LH) at 10.91%, which runs around its industry’s norm.

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%

LH

Health Care Equipment & Services industry group

10.91%

Max
35.43%
Q3
14.14%
LH
10.91%
Median
6.81%
Q1
-0.28%
Min
-16.29%
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Encompass Health (EHC) vs. Labcorp (LH): A comparison of their operating margin against the Health Care Equipment & Services industry group benchmark.

Profitability Metrics

Profitability metrics for Encompass Health (EHC) and Labcorp (LH)
MetricEHCLH
ROE (TTM)25.11%11.44%
ROA (TTM)10.08%5.48%
Net Margin (TTM)10.17%6.88%
Operating Margin (TTM)18.07%10.91%
Gross Margin (TTM)44.15%28.96%

Growth

Revenue Growth

Both Encompass Health (EHC) at 10.46% and Labcorp (LH) at 7.25% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

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Encompass Health (EHC) vs. Labcorp (LH): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Encompass Health (EHC) at 24.22% and Labcorp (LH) at 18.33% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

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Encompass Health (EHC) vs. Labcorp (LH): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Encompass Health (EHC) and Labcorp (LH)
MetricEHCLH
Revenue Growth (YoY)10.46%7.25%
Revenue Growth (3Y CAGR)10.92%5.55%
EPS Growth (YoY)24.22%18.33%
EPS Growth (3Y CAGR)27.07%-9.19%

Financial Strength

Current Ratio (MRQ)

Labcorp (LH) at 1.41 keeps current ratio within its industry’s typical mid-range, while Encompass Health (EHC) at 1.09 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for EHC.

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

LH

Health Care Equipment & Services industry group

1.41

Max
7.59
Q3
4.00
Median
1.98
LH
1.41
Q1
1.37
Min
0.30
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Encompass Health (EHC) vs. Labcorp (LH): A comparison of their current ratio against the Health Care Equipment & Services industry group benchmark.

Debt / Equity (MRQ)

Both Encompass Health (EHC) at 0.79 and Labcorp (LH) at 0.77 fund their balance sheets with roughly industry-typical debt-to-equity mixes.

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

LH

Health Care Equipment & Services industry group

0.77

Max
1.88
Q3
0.91
LH
0.77
Median
0.58
Q1
0.16
Min
0.00
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Encompass Health (EHC) vs. Labcorp (LH): A comparison of their debt-to-equity ratio against the Health Care Equipment & Services industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Encompass Health (EHC) and Labcorp (LH)
MetricEHCLH
Current Ratio (MRQ)1.091.41
Debt / Equity (MRQ)0.790.77
Net Debt / EBITDA1.792.81

Dividends

Dividend Yield (TTM)

Both Encompass Health (EHC) at 0.55% and Labcorp (LH) at 0.79% yield above their industries’ entire benchmark ranges — high enough that dividend safety, not income, becomes the first question.

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%

LH

Health Care Equipment & Services industry group

0.79%

LH
0.79%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Encompass Health (EHC) vs. Labcorp (LH): A comparison of their dividend yield against the Health Care Equipment & Services industry group benchmark.

Dividend Payout Ratio (TTM)

Both Encompass Health (EHC) at 12.48% and Labcorp (LH) at 23.61% pay out more of their earnings than any of their industry peers — the thinnest cover in their groups, so dividend headroom deserves attention.

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%

LH

Health Care Equipment & Services industry group

23.61%

LH
23.61%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Encompass Health (EHC) vs. Labcorp (LH): A comparison of their payout ratio against the Health Care Equipment & Services industry group benchmark.

Dividend Metrics

Dividend metrics for Encompass Health (EHC) and Labcorp (LH)
MetricEHCLH
Dividend Yield (TTM)0.55%0.79%
Dividend Payout Ratio (TTM)12.48%23.61%

Valuation

P/E Ratio (TTM)

Both Encompass Health (EHC) at 22.01 and Labcorp (LH) at 30.05 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

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

LH

Health Care Equipment & Services industry group

30.05

Max
80.41
Q3
47.62
LH
30.05
Median
29.93
Q1
21.19
Min
4.21
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Encompass Health (EHC) vs. Labcorp (LH): A comparison of their P/E ratio against the Health Care Equipment & Services industry group benchmark.

P/S Ratio (TTM)

On P/S ratio, both Encompass Health (EHC) at 2.13 and Labcorp (LH) at 2.04 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.

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

LH

Health Care Equipment & Services industry group

2.04

Max
8.80
Q3
4.32
Median
2.13
LH
2.04
Q1
1.10
Min
0.03
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Encompass Health (EHC) vs. Labcorp (LH): A comparison of their P/S ratio against the Health Care Equipment & Services industry group benchmark.

P/B Ratio (MRQ)

On P/B ratio, both Encompass Health (EHC) at 5.04 and Labcorp (LH) at 3.36 are valued close to their industries’ norm against book — neither stands out from peers.

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

LH

Health Care Equipment & Services industry group

3.36

Max
11.68
Q3
6.12
LH
3.36
Median
3.00
Q1
1.73
Min
-1.31
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Encompass Health (EHC) vs. Labcorp (LH): A comparison of their P/B ratio against the Health Care Equipment & Services industry group benchmark.

Valuation Metrics

Valuation metrics for Encompass Health (EHC) and Labcorp (LH)
MetricEHCLH
P/E Ratio (TTM)22.0130.05
P/S Ratio (TTM)2.132.04
P/B Ratio (MRQ)5.043.36
Free Cash Flow Yield (TTM)1.97%3.55%