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.
| Profile Item | EHC | MCK |
|---|---|---|
| Name | Encompass Health Corporation | McKesson 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 Facilities | Health Care Distributors |
| Market Capitalization | 13.50 billion USD | 122.48 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | NYSE |
| Listing Date | September 24, 1986 | November 10, 1994 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | EHC | MCK |
|---|---|---|
| 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
Return Distribution
Risk Metrics
| Metric | EHC | MCK |
|---|---|---|
| Volatility (1Y, Annualized) | 30.54% | 31.71% |
| Beta (5Y) | 0.82 | 0.26 |
| Max Drawdown (5Y) | -27.33% | -27.17% |
| Avg. Volume (3M) | 996.79K | 822.69K |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | EHC | MCK |
|---|---|---|
| Sharpe Ratio (1Y) | 0.59 | 0.67 |
| Sortino Ratio (1Y) | 1.08 | 1.15 |
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
- --
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%
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%
Profitability Metrics
| Metric | EHC | MCK |
|---|---|---|
| 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.
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.
Growth Metrics
| Metric | EHC | MCK |
|---|---|---|
| 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
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
- --
Financial Strength Metrics
| Metric | EHC | MCK |
|---|---|---|
| Current Ratio (MRQ) | 1.09 | 0.90 |
| Debt / Equity (MRQ) | 0.79 | -- |
| Net Debt / EBITDA | 1.79 | 0.64 |
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%
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%
Dividend Metrics
| Metric | EHC | MCK |
|---|---|---|
| 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
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
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
Valuation Metrics
| Metric | EHC | MCK |
|---|---|---|
| P/E Ratio (TTM) | 22.01 | 27.36 |
| P/S Ratio (TTM) | 2.13 | 0.29 |
| P/B Ratio (MRQ) | 5.04 | -30.85 |
| Free Cash Flow Yield (TTM) | 1.97% | 6.04% |