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EHC vs. MCK: Encompass Health vs. McKesson Stock Comparison

How do Encompass Health (EHC) and McKesson (MCK) 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 McKesson (MCK) both belong to the Health Care Providers & Services industry, though EHC is classified under Health Care Facilities while MCK falls under Health Care Distributors.

Company profile comparison for Encompass Health (EHC) and McKesson (MCK)
Profile ItemEHCMCK
NameEncompass Health CorporationMcKesson Corporation
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 Distributors
Market Capitalization13.50 billion USD122.48 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateSeptember 24, 1986November 10, 1994
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

EHC
MCK
GSPC
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Encompass Health (EHC) vs. McKesson (MCK), 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 McKesson (MCK). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for Encompass Health (EHC) and McKesson (MCK)
MetricEHCMCK
Total Return (1Y)22.16%25.40%
Total Return (3Y, Annualized)30.96%32.67%
Total Return (5Y, Annualized)23.55%37.84%

Risk Profile

Drawdown History

EHC
MCK
GSPC
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Encompass Health (EHC) vs. McKesson (MCK), 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 McKesson (MCK). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Encompass Health (EHC) and McKesson (MCK)
MetricEHCMCK
Volatility (1Y, Annualized)30.54%31.71%
Beta (5Y)0.820.26
Max Drawdown (5Y)-27.33%-27.17%
Avg. Volume (3M)996.79K822.69K

Risk-Adjusted Performance

Risk-Return Positioning

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EHC and MCK 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 McKesson (MCK)
MetricEHCMCK
Sharpe Ratio (1Y)0.590.67
Sortino Ratio (1Y)1.081.15

Profitability

ROE (TTM)

Capital efficiency shows on one side only: Encompass Health (EHC) earns 25.11% on shareholders’ equity, ranked against its industry; McKesson (MCK) has no ROE this period.

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%

MCK

Health Care Equipment & Services industry group

--

Max
47.61%
Q3
14.36%
Median
5.45%
Q1
-10.67%
Min
-47.01%
MCK
--
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Encompass Health (EHC) vs. McKesson (MCK): MCK does not report ROE, so it has no value marker; EHC is benchmarked against the Health Care Equipment & Services industry group.

Net Margin (TTM)

Encompass Health (EHC) at 10.17% retains a top-quartile share of revenue as profit, ahead of McKesson (MCK) at 1.12%, 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%

MCK

Health Care Equipment & Services industry group

1.12%

Max
29.35%
Q3
9.33%
Median
2.18%
MCK
1.12%
Q1
-6.29%
Min
-28.46%
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Encompass Health (EHC) vs. McKesson (MCK): 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 McKesson (MCK) at 1.48%, 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%

MCK

Health Care Equipment & Services industry group

1.48%

Max
35.43%
Q3
14.14%
Median
6.81%
MCK
1.48%
Q1
-0.28%
Min
-16.29%
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Encompass Health (EHC) vs. McKesson (MCK): A comparison of their operating margin against the Health Care Equipment & Services industry group benchmark.

Profitability Metrics

Profitability metrics for Encompass Health (EHC) and McKesson (MCK)
MetricEHCMCK
ROE (TTM)25.11%--
ROA (TTM)10.08%4.72%
Net Margin (TTM)10.17%1.12%
Operating Margin (TTM)18.07%1.48%
Gross Margin (TTM)44.15%3.65%

Growth

Revenue Growth

Both Encompass Health (EHC) at 10.46% and McKesson (MCK) at 12.36% 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. McKesson (MCK): A comparison of their Revenue Growth across different time periods.

EPS Growth

McKesson (MCK) at 49.22% sits in the top EPS growth quartile, while Encompass Health (EHC) at 24.22% is closer to the peer norm — faster per-share earnings growth for MCK.

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

Growth Metrics

Growth metrics for Encompass Health (EHC) and McKesson (MCK)
MetricEHCMCK
Revenue Growth (YoY)10.46%12.36%
Revenue Growth (3Y CAGR)10.92%13.39%
EPS Growth (YoY)24.22%49.22%
EPS Growth (3Y CAGR)27.07%15.31%

Financial Strength

Current Ratio (MRQ)

Both Encompass Health (EHC) at 1.09 and McKesson (MCK) at 0.90 run current ratio in the tighter-liquidity quartile of industry peers, leaving thinner cushions against current liabilities than typical competitors.

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

MCK

Health Care Equipment & Services industry group

0.90

Max
7.59
Q3
4.00
Median
1.98
Q1
1.37
MCK
0.90
Min
0.30
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Encompass Health (EHC) vs. McKesson (MCK): A comparison of their current ratio against the Health Care Equipment & Services industry group benchmark.

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 McKesson (MCK) reports no figure this period.

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

MCK

Health Care Equipment & Services industry group

--

Max
1.88
Q3
0.91
Median
0.58
Q1
0.16
Min
0.00
MCK
--
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Encompass Health (EHC) vs. McKesson (MCK): MCK does not report debt-to-equity ratio, so it has no value marker; EHC is benchmarked against the Health Care Equipment & Services industry group.

Financial Strength Metrics

Financial strength metrics for Encompass Health (EHC) and McKesson (MCK)
MetricEHCMCK
Current Ratio (MRQ)1.090.90
Debt / Equity (MRQ)0.79--
Net Debt / EBITDA1.790.64

Dividends

Dividend Yield (TTM)

Both Encompass Health (EHC) at 0.55% and McKesson (MCK) at 0.32% 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%

MCK

Health Care Equipment & Services industry group

0.32%

MCK
0.32%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Encompass Health (EHC) vs. McKesson (MCK): 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 McKesson (MCK) at 8.77% 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%

MCK

Health Care Equipment & Services industry group

8.77%

MCK
8.77%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Encompass Health (EHC) vs. McKesson (MCK): A comparison of their payout ratio against the Health Care Equipment & Services industry group benchmark.

Dividend Metrics

Dividend metrics for Encompass Health (EHC) and McKesson (MCK)
MetricEHCMCK
Dividend Yield (TTM)0.55%0.32%
Dividend Payout Ratio (TTM)12.48%8.77%

Valuation

P/E Ratio (TTM)

Both Encompass Health (EHC) at 22.01 and McKesson (MCK) at 27.36 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

MCK

Health Care Equipment & Services industry group

27.36

Max
80.41
Q3
47.62
Median
29.93
MCK
27.36
Q1
21.19
Min
4.21
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Encompass Health (EHC) vs. McKesson (MCK): A comparison of their P/E ratio against the Health Care Equipment & Services industry group benchmark.

P/S Ratio (TTM)

McKesson (MCK) at 0.29 sits in the cheaper P/S ratio quartile while Encompass Health (EHC) at 2.13 prices around its industry’s middle — MCK costs less per dollar of sales, though read it alongside growth and margins.

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

MCK

Health Care Equipment & Services industry group

0.29

Max
8.80
Q3
4.32
Median
2.13
Q1
1.10
MCK
0.29
Min
0.03
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Encompass Health (EHC) vs. McKesson (MCK): A comparison of their P/S ratio against the Health Care Equipment & Services industry group benchmark.

P/B Ratio (MRQ)

McKesson (MCK) reports a negative P/B ratio of -30.85, meaning negative book equity — the multiple itself is not meaningful for valuation. Meanwhile Encompass Health (EHC) reports 5.04, ranking against industry peers normally.

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

MCK

Health Care Equipment & Services industry group

-30.85

Max
11.68
Q3
6.12
Median
3.00
Q1
1.73
Min
-1.31
MCK
-30.85
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Encompass Health (EHC) vs. McKesson (MCK): 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 McKesson (MCK)
MetricEHCMCK
P/E Ratio (TTM)22.0127.36
P/S Ratio (TTM)2.130.29
P/B Ratio (MRQ)5.04-30.85
Free Cash Flow Yield (TTM)1.97%6.04%