EHC vs. MDT: Encompass Health vs. Medtronic Stock Comparison
How do Encompass Health (EHC) and Medtronic (MDT) 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 Medtronic (MDT) both fall under the Health Care Equipment & Services industry group, but EHC is classified in Health Care Providers & Services while MDT is classified in Health Care Equipment & Supplies.
| Profile Item | EHC | MDT |
|---|---|---|
| Name | Encompass Health Corporation | Medtronic plc |
| Country/Region | United States | Ireland |
| 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 Equipment & Supplies |
| GICS Sub-Industry | Health Care Facilities | Health Care Equipment |
| Market Capitalization | 13.50 billion USD | 130.22 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | NYSE |
| Listing Date | September 24, 1986 | May 2, 1973 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | EHC | MDT |
|---|---|---|
| Total Return (1Y) | 22.16% | 15.72% |
| Total Return (3Y, Annualized) | 30.96% | 17.58% |
| Total Return (5Y, Annualized) | 23.55% | -0.18% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
Medtronic (MDT) is heavily traded at around 16.48M shares per day, whereas Encompass Health (EHC) sees a more moderate 996.79K — larger orders in the latter may require more patience and tighter control over order sizing.
| Metric | EHC | MDT |
|---|---|---|
| Volatility (1Y, Annualized) | 30.54% | 25.84% |
| Beta (5Y) | 0.82 | 0.53 |
| Max Drawdown (5Y) | -27.33% | -39.67% |
| Avg. Volume (3M) | 996.79K | 16.48M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | EHC | MDT |
|---|---|---|
| Sharpe Ratio (1Y) | 0.59 | 0.44 |
| Sortino Ratio (1Y) | 1.08 | 0.71 |
Profitability
ROE (TTM)
Encompass Health (EHC) at 25.11% sits in the top ROE quartile, while Medtronic (MDT) at 10.65% 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%
MDT
Health Care Equipment & Services industry group
10.65%
- Max
- 47.61%
- Q3
- 14.36%
- MDT
- 10.65%
- Median
- 5.45%
- Q1
- -10.67%
- Min
- -47.01%
Net Margin (TTM)
For every dollar of sales, both Encompass Health (EHC) at 10.17% and Medtronic (MDT) at 13.93% retain more as net profit than most peers, landing in the top net margin quartile of their industries.
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%
MDT
Health Care Equipment & Services industry group
13.93%
- Max
- 29.35%
- MDT
- 13.93%
- Q3
- 9.33%
- Median
- 2.18%
- Q1
- -6.29%
- Min
- -28.46%
Operating Margin (TTM)
Both Encompass Health (EHC) at 18.07% and Medtronic (MDT) at 19.33% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.
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%
MDT
Health Care Equipment & Services industry group
19.33%
- Max
- 35.43%
- MDT
- 19.33%
- Q3
- 14.14%
- Median
- 6.81%
- Q1
- -0.28%
- Min
- -16.29%
Profitability Metrics
| Metric | EHC | MDT |
|---|---|---|
| ROE (TTM) | 25.11% | 10.65% |
| ROA (TTM) | 10.08% | 5.12% |
| Net Margin (TTM) | 10.17% | 13.93% |
| Operating Margin (TTM) | 18.07% | 19.33% |
| Gross Margin (TTM) | 44.15% | 65.27% |
Growth
Revenue Growth
Both Encompass Health (EHC) at 10.46% and Medtronic (MDT) at 8.43% 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 Medtronic (MDT) at 3.32% 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 | MDT |
|---|---|---|
| Revenue Growth (YoY) | 10.46% | 8.43% |
| Revenue Growth (3Y CAGR) | 10.92% | 5.21% |
| EPS Growth (YoY) | 24.22% | 3.32% |
| EPS Growth (3Y CAGR) | 27.07% | 9.77% |
Financial Strength
Current Ratio (MRQ)
Medtronic (MDT) at 2.07 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
MDT
Health Care Equipment & Services industry group
2.07
- Max
- 7.59
- Q3
- 4.00
- MDT
- 2.07
- Median
- 1.98
- Q1
- 1.37
- Min
- 0.30
Debt / Equity (MRQ)
Both Encompass Health (EHC) at 0.79 and Medtronic (MDT) at 0.55 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
MDT
Health Care Equipment & Services industry group
0.55
- Max
- 1.88
- Q3
- 0.91
- Median
- 0.58
- MDT
- 0.55
- Q1
- 0.16
- Min
- 0.00
Financial Strength Metrics
| Metric | EHC | MDT |
|---|---|---|
| Current Ratio (MRQ) | 1.09 | 2.07 |
| Debt / Equity (MRQ) | 0.79 | 0.55 |
| Net Debt / EBITDA | 1.79 | 1.86 |
Dividends
Dividend Yield (TTM)
Both Encompass Health (EHC) at 0.55% and Medtronic (MDT) at 2.72% 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%
MDT
Health Care Equipment & Services industry group
2.72%
- MDT
- 2.72%
- 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 Medtronic (MDT) at 70.02% 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%
MDT
Health Care Equipment & Services industry group
70.02%
- MDT
- 70.02%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | EHC | MDT |
|---|---|---|
| Dividend Yield (TTM) | 0.55% | 2.72% |
| Dividend Payout Ratio (TTM) | 12.48% | 70.02% |
Valuation
P/E Ratio (TTM)
Both Encompass Health (EHC) at 22.01 and Medtronic (MDT) at 25.01 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
MDT
Health Care Equipment & Services industry group
25.01
- Max
- 80.41
- Q3
- 47.62
- Median
- 29.93
- MDT
- 25.01
- Q1
- 21.19
- Min
- 4.21
P/S Ratio (TTM)
On P/S ratio, both Encompass Health (EHC) at 2.13 and Medtronic (MDT) at 3.47 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
MDT
Health Care Equipment & Services industry group
3.47
- Max
- 8.80
- Q3
- 4.32
- MDT
- 3.47
- Median
- 2.13
- Q1
- 1.10
- Min
- 0.03
P/B Ratio (MRQ)
On P/B ratio, both Encompass Health (EHC) at 5.04 and Medtronic (MDT) at 2.59 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
MDT
Health Care Equipment & Services industry group
2.59
- Max
- 11.68
- Q3
- 6.12
- Median
- 3.00
- MDT
- 2.59
- Q1
- 1.73
- Min
- -1.31
Valuation Metrics
| Metric | EHC | MDT |
|---|---|---|
| P/E Ratio (TTM) | 22.01 | 25.01 |
| P/S Ratio (TTM) | 2.13 | 3.47 |
| P/B Ratio (MRQ) | 5.04 | 2.59 |
| Free Cash Flow Yield (TTM) | 1.97% | 4.16% |