EHC vs. MCK: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at EHC and MCK, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | EHC | MCK |
|---|---|---|
| Company Name | Encompass Health Corporation | McKesson Corporation |
| Country | United States | United States |
| GICS Sector | Health Care | Health Care |
| GICS Industry | Health Care Providers & Services | Health Care Providers & Services |
| Market Capitalization | 11.59 billion USD | 106.07 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | September 24, 1986 | November 10, 1994 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of EHC and MCK 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.
Historical Performance at a Glance
| Symbol | EHC | MCK |
|---|---|---|
| 5-Day Price Return | -1.65% | 2.10% |
| 13-Week Price Return | -1.90% | 27.74% |
| 26-Week Price Return | -1.93% | 18.97% |
| 52-Week Price Return | 11.28% | 41.46% |
| Month-to-Date Return | 1.19% | 5.92% |
| Year-to-Date Return | 24.75% | 50.79% |
| 10-Day Avg. Volume | 1.29M | 0.79M |
| 3-Month Avg. Volume | 0.84M | 0.74M |
| 3-Month Volatility | 20.40% | 24.61% |
| Beta | 0.75 | 0.41 |
Profitability
Return on Equity (TTM)
EHC
24.37%
Health Care Providers & Services Industry
- Max
- 24.86%
- Q3
- 15.79%
- Median
- 8.56%
- Q1
- 5.75%
- Min
- -1.64%
In the upper quartile for the Health Care Providers & Services industry, EHC’s Return on Equity of 24.37% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
MCK
39.43%
Health Care Providers & Services Industry
- Max
- 24.86%
- Q3
- 15.79%
- Median
- 8.56%
- Q1
- 5.75%
- Min
- -1.64%
MCK’s Return on Equity of 39.43% is exceptionally high, placing it well beyond the typical range for the Health Care Providers & Services industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
Net Profit Margin (TTM)
EHC
9.33%
Health Care Providers & Services Industry
- Max
- 11.56%
- Q3
- 5.45%
- Median
- 2.83%
- Q1
- 1.13%
- Min
- -1.71%
A Net Profit Margin of 9.33% places EHC in the upper quartile for the Health Care Providers & Services industry, signifying strong profitability and more effective cost management than most of its peers.
MCK
1.04%
Health Care Providers & Services Industry
- Max
- 11.56%
- Q3
- 5.45%
- Median
- 2.83%
- Q1
- 1.13%
- Min
- -1.71%
Falling into the lower quartile for the Health Care Providers & Services industry, MCK’s Net Profit Margin of 1.04% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.
Operating Profit Margin (TTM)
EHC
17.29%
Health Care Providers & Services Industry
- Max
- 19.08%
- Q3
- 9.66%
- Median
- 4.77%
- Q1
- 2.46%
- Min
- -0.83%
An Operating Profit Margin of 17.29% places EHC in the upper quartile for the Health Care Providers & Services industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
MCK
1.36%
Health Care Providers & Services Industry
- Max
- 19.08%
- Q3
- 9.66%
- Median
- 4.77%
- Q1
- 2.46%
- Min
- -0.83%
MCK’s Operating Profit Margin of 1.36% is in the lower quartile for the Health Care Providers & Services industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
Profitability at a Glance
| Symbol | EHC | MCK |
|---|---|---|
| Return on Equity (TTM) | 24.37% | 39.43% |
| Return on Assets (TTM) | 8.07% | 5.18% |
| Net Profit Margin (TTM) | 9.33% | 1.04% |
| Operating Profit Margin (TTM) | 17.29% | 1.36% |
| Gross Profit Margin (TTM) | 95.65% | 3.47% |
Financial Strength
Current Ratio (MRQ)
EHC
1.14
Health Care Providers & Services Industry
- Max
- 2.00
- Q3
- 1.51
- Median
- 1.29
- Q1
- 0.92
- Min
- 0.14
EHC’s Current Ratio of 1.14 aligns with the median group of the Health Care Providers & Services industry, indicating that its short-term liquidity is in line with its sector peers.
MCK
0.88
Health Care Providers & Services Industry
- Max
- 2.00
- Q3
- 1.51
- Median
- 1.29
- Q1
- 0.92
- Min
- 0.14
MCK’s Current Ratio of 0.88 falls into the lower quartile for the Health Care Providers & Services 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 (MRQ)
EHC
1.02
Health Care Providers & Services Industry
- Max
- 2.29
- Q3
- 1.24
- Median
- 0.74
- Q1
- 0.50
- Min
- 0.00
EHC’s Debt-to-Equity Ratio of 1.02 is typical for the Health Care Providers & Services industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
MCK
1.29
Health Care Providers & Services Industry
- Max
- 2.29
- Q3
- 1.24
- Median
- 0.74
- Q1
- 0.50
- Min
- 0.00
MCK’s leverage is in the upper quartile of the Health Care Providers & Services industry, with a Debt-to-Equity Ratio of 1.29. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
Interest Coverage Ratio (TTM)
EHC
6.58
Health Care Providers & Services Industry
- Max
- 14.47
- Q3
- 7.50
- Median
- 4.52
- Q1
- 2.12
- Min
- -4.44
EHC’s Interest Coverage Ratio of 6.58 is positioned comfortably within the norm for the Health Care Providers & Services industry, indicating a standard and healthy capacity to cover its interest payments.
MCK
17.45
Health Care Providers & Services Industry
- Max
- 14.47
- Q3
- 7.50
- Median
- 4.52
- Q1
- 2.12
- Min
- -4.44
With an Interest Coverage Ratio of 17.45, MCK demonstrates a superior capacity to service its debt, placing it well above the typical range for the Health Care Providers & Services industry. This stems from either robust earnings or a conservative debt load.
Financial Strength at a Glance
| Symbol | EHC | MCK |
|---|---|---|
| Current Ratio (MRQ) | 1.14 | 0.88 |
| Quick Ratio (MRQ) | 0.92 | 0.48 |
| Debt-to-Equity Ratio (MRQ) | 1.02 | 1.29 |
| Interest Coverage Ratio (TTM) | 6.58 | 17.45 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
EHC
0.60%
Health Care Providers & Services Industry
- Max
- 5.93%
- Q3
- 2.59%
- Median
- 1.35%
- Q1
- 0.00%
- Min
- 0.00%
EHC’s Dividend Yield of 0.60% is consistent with its peers in the Health Care Providers & Services industry, providing a dividend return that is standard for its sector.
MCK
0.34%
Health Care Providers & Services Industry
- Max
- 5.93%
- Q3
- 2.59%
- Median
- 1.35%
- Q1
- 0.00%
- Min
- 0.00%
MCK’s Dividend Yield of 0.34% is consistent with its peers in the Health Care Providers & Services industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
EHC
12.77%
Health Care Providers & Services Industry
- Max
- 185.33%
- Q3
- 74.82%
- Median
- 36.00%
- Q1
- 0.00%
- Min
- 0.00%
EHC’s Dividend Payout Ratio of 12.77% is within the typical range for the Health Care Providers & Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
MCK
8.98%
Health Care Providers & Services Industry
- Max
- 185.33%
- Q3
- 74.82%
- Median
- 36.00%
- Q1
- 0.00%
- Min
- 0.00%
MCK’s Dividend Payout Ratio of 8.98% is within the typical range for the Health Care Providers & Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | EHC | MCK |
|---|---|---|
| Dividend Yield (TTM) | 0.60% | 0.34% |
| Dividend Payout Ratio (TTM) | 12.77% | 8.98% |
Valuation
Price-to-Earnings Ratio (TTM)
EHC
21.34
Health Care Providers & Services Industry
- Max
- 40.02
- Q3
- 29.75
- Median
- 21.09
- Q1
- 14.18
- Min
- 7.05
EHC’s P/E Ratio of 21.34 is within the middle range for the Health Care Providers & Services industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
MCK
26.10
Health Care Providers & Services Industry
- Max
- 40.02
- Q3
- 29.75
- Median
- 21.09
- Q1
- 14.18
- Min
- 7.05
MCK’s P/E Ratio of 26.10 is within the middle range for the Health Care Providers & Services industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Price-to-Sales Ratio (TTM)
EHC
1.99
Health Care Providers & Services Industry
- Max
- 3.15
- Q3
- 1.87
- Median
- 0.74
- Q1
- 0.27
- Min
- 0.09
EHC’s P/S Ratio of 1.99 is in the upper echelon for the Health Care Providers & Services 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.
MCK
0.27
Health Care Providers & Services Industry
- Max
- 3.15
- Q3
- 1.87
- Median
- 0.74
- Q1
- 0.27
- Min
- 0.09
MCK’s P/S Ratio of 0.27 aligns with the market consensus for the Health Care Providers & Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio (MRQ)
EHC
5.39
Health Care Providers & Services Industry
- Max
- 7.33
- Q3
- 4.45
- Median
- 2.52
- Q1
- 1.15
- Min
- 0.66
EHC’s P/B Ratio of 5.39 is in the upper tier for the Health Care Providers & Services 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.
MCK
4.06
Health Care Providers & Services Industry
- Max
- 7.33
- Q3
- 4.45
- Median
- 2.52
- Q1
- 1.15
- Min
- 0.66
MCK’s P/B Ratio of 4.06 is within the conventional range for the Health Care Providers & Services industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | EHC | MCK |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 21.34 | 26.10 |
| Price-to-Sales Ratio (TTM) | 1.99 | 0.27 |
| Price-to-Book Ratio (MRQ) | 5.39 | 4.06 |
| Price-to-Free Cash Flow Ratio (TTM) | 28.67 | 10.86 |