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.
| Profile Item | EHC | LH |
|---|---|---|
| Name | Encompass Health Corporation | Labcorp Holdings Inc. |
| 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 Facilities | Health Care Services |
| Market Capitalization | 13.50 billion USD | 29.77 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | NYSE |
| Listing Date | September 24, 1986 | March 29, 1990 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | EHC | LH |
|---|---|---|
| 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
Return Distribution
Risk Metrics
| Metric | EHC | LH |
|---|---|---|
| Volatility (1Y, Annualized) | 30.54% | 24.36% |
| Beta (5Y) | 0.82 | 0.85 |
| Max Drawdown (5Y) | -27.33% | -34.61% |
| Avg. Volume (3M) | 996.79K | 721.05K |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | EHC | LH |
|---|---|---|
| Sharpe Ratio (1Y) | 0.59 | 1.82 |
| Sortino Ratio (1Y) | 1.08 | 2.99 |
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%
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%
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%
Profitability Metrics
| Metric | EHC | LH |
|---|---|---|
| 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.
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.
Growth Metrics
| Metric | EHC | LH |
|---|---|---|
| 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
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
Financial Strength Metrics
| Metric | EHC | LH |
|---|---|---|
| Current Ratio (MRQ) | 1.09 | 1.41 |
| Debt / Equity (MRQ) | 0.79 | 0.77 |
| Net Debt / EBITDA | 1.79 | 2.81 |
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%
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%
Dividend Metrics
| Metric | EHC | LH |
|---|---|---|
| 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
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
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
Valuation Metrics
| Metric | EHC | LH |
|---|---|---|
| P/E Ratio (TTM) | 22.01 | 30.05 |
| P/S Ratio (TTM) | 2.13 | 2.04 |
| P/B Ratio (MRQ) | 5.04 | 3.36 |
| Free Cash Flow Yield (TTM) | 1.97% | 3.55% |