EHC vs. SOLV: Encompass Health vs. Solventum Stock Comparison

November 11, 2026

How do Encompass Health (EHC) and Solventum (SOLV) 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 Solventum (SOLV) both fall under the Health Care Equipment & Services industry group, but EHC is classified in Health Care Providers & Services while SOLV is classified in Health Care Equipment & Supplies.

Encompass Health (EHC) carries decades of public-market history since September 24, 1986, while Solventum (SOLV) listed on March 26, 2024 — long-window comparisons have far more historical data on the EHC side.

Company profile comparison for Encompass Health (EHC) and Solventum (SOLV)
Profile Item	EHC	SOLV
Name	Encompass Health Corporation	Solventum 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 Equipment & Supplies
GICS Sub-Industry	Health Care Facilities	Health Care Supplies
Market Capitalization	13.50 billion USD	15.36 billion USD
Currency	USD	USD
Exchange	NYSE	NYSE
Listing Date	September 24, 1986	March 26, 2024
Security Type	Common Stock	Common Stock

Price Performance

Cumulative Growth

EHC

SOLV

GSPC

Encompass Health (EHC) vs. Solventum (SOLV), 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 Solventum (SOLV). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for Encompass Health (EHC) and Solventum (SOLV)
Metric	EHC	SOLV
Total Return (1Y)	22.16%	25.89%
Total Return (3Y, Annualized)	30.96%	--
Total Return (5Y, Annualized)	23.55%	--

Risk Profile

Drawdown History

EHC

SOLV

GSPC

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

Risk Metrics

Risk profile metrics for Encompass Health (EHC) and Solventum (SOLV)
Metric	EHC	SOLV
Volatility (1Y, Annualized)	30.54%	30.06%
Beta (5Y)	0.82	0.62
Max Drawdown (5Y)	-27.33%	-39.98%
Avg. Volume (3M)	996.79K	1.05M

Risk-Adjusted Performance

Risk-Return Positioning

EHC and SOLV 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 Solventum (SOLV)
Metric	EHC	SOLV
Sharpe Ratio (1Y)	0.59	0.72
Sortino Ratio (1Y)	1.08	1.08

Profitability

ROE (TTM)

Encompass Health (EHC) at 25.11% sits in the top ROE quartile, while Solventum (SOLV) at 3.19% 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%

SOLV

Health Care Equipment & Services industry group

3.19%

Max: 47.61%
Q3: 14.36%
Median: 5.45%
SOLV: 3.19%
Q1: -10.67%
Min: -47.01%

Encompass Health (EHC) vs. Solventum (SOLV): A comparison of their ROE against the Health Care Equipment & Services industry group benchmark.

Net Margin (TTM)

Encompass Health (EHC) at 10.17% retains a top-quartile share of revenue as profit, ahead of Solventum (SOLV) at 1.91%, 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%

SOLV

Health Care Equipment & Services industry group

1.91%

Max: 29.35%
Q3: 9.33%
Median: 2.18%
SOLV: 1.91%
Q1: -6.29%
Min: -28.46%

Encompass Health (EHC) vs. Solventum (SOLV): 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 Solventum (SOLV) at 6.82%, 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%

SOLV

Health Care Equipment & Services industry group

6.82%

Max: 35.43%
Q3: 14.14%
SOLV: 6.82%
Median: 6.81%
Q1: -0.28%
Min: -16.29%

Encompass Health (EHC) vs. Solventum (SOLV): A comparison of their operating margin against the Health Care Equipment & Services industry group benchmark.

Profitability Metrics

Profitability metrics for Encompass Health (EHC) and Solventum (SOLV)
Metric	EHC	SOLV
ROE (TTM)	25.11%	3.19%
ROA (TTM)	10.08%	2.29%
Net Margin (TTM)	10.17%	1.91%
Operating Margin (TTM)	18.07%	6.82%
Gross Margin (TTM)	44.15%	55.13%

Growth

Revenue Growth

Encompass Health (EHC) at 10.46% is around its peer norm for revenue growth, while Solventum (SOLV) at 0.86% drops into the bottom quartile, signaling weaker demand or pricing momentum.

Encompass Health (EHC) vs. Solventum (SOLV): A comparison of their Revenue Growth across different time periods.

EPS Growth

Solventum (SOLV) at 221.74% clears its industry range for EPS growth, a much stronger earnings trajectory than Encompass Health (EHC) at 24.22%, which is closer to a typical peer reading.

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

Growth Metrics

Growth metrics for Encompass Health (EHC) and Solventum (SOLV)
Metric	EHC	SOLV
Revenue Growth (YoY)	10.46%	0.86%
Revenue Growth (3Y CAGR)	10.92%	0.79%
EPS Growth (YoY)	24.22%	221.74%
EPS Growth (3Y CAGR)	27.07%	4.51%

Financial Strength

Current Ratio (MRQ)

Both Encompass Health (EHC) at 1.09 and Solventum (SOLV) at 1.03 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

SOLV

Health Care Equipment & Services industry group

1.03

Max: 7.59
Q3: 4.00
Median: 1.98
Q1: 1.37
SOLV: 1.03
Min: 0.30

Encompass Health (EHC) vs. Solventum (SOLV): A comparison of their current ratio against the Health Care Equipment & Services industry group benchmark.

Debt / Equity (MRQ)

Encompass Health (EHC) at 0.79 carries an industry-typical debt-to-equity mix, while Solventum (SOLV) at 1.10 uses more debt funding than most peers.

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

SOLV

Health Care Equipment & Services industry group

1.10

Max: 1.88
SOLV: 1.10
Q3: 0.91
Median: 0.58
Q1: 0.16
Min: 0.00

Encompass Health (EHC) vs. Solventum (SOLV): A comparison of their debt-to-equity ratio against the Health Care Equipment & Services industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Encompass Health (EHC) and Solventum (SOLV)
Metric	EHC	SOLV
Current Ratio (MRQ)	1.09	1.03
Debt / Equity (MRQ)	0.79	1.10
Net Debt / EBITDA	1.79	4.66

Dividends

Dividend Yield (TTM)

Solventum (SOLV) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Encompass Health (EHC) reports a yield of 0.55%, ranking against industry peers normally.

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%

SOLV

Health Care Equipment & Services industry group

0.00%

SOLV: 0.00%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Encompass Health (EHC) vs. Solventum (SOLV): A comparison of their dividend yield against the Health Care Equipment & Services industry group benchmark.

Dividend Payout Ratio (TTM)

Solventum (SOLV) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Encompass Health (EHC) reports a payout of 12.48%, ranking against industry peers normally.

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%

SOLV

Health Care Equipment & Services industry group

0.00%

SOLV: 0.00%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Encompass Health (EHC) vs. Solventum (SOLV): A comparison of their payout ratio against the Health Care Equipment & Services industry group benchmark.

Dividend Metrics

Dividend metrics for Encompass Health (EHC) and Solventum (SOLV)
Metric	EHC	SOLV
Dividend Yield (TTM)	0.55%	0.00%
Dividend Payout Ratio (TTM)	12.48%	0.00%

Valuation

P/E Ratio (TTM)

Encompass Health (EHC) at 22.01 is near its industry’s usual P/E ratio, while Solventum (SOLV) at 101.55 sits above its peer range — an unusually expensive price for SOLV’s trailing earnings.

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

SOLV

Health Care Equipment & Services industry group

101.55

SOLV: 101.55
Max: 80.41
Q3: 47.62
Median: 29.93
Q1: 21.19
Min: 4.21

Encompass Health (EHC) vs. Solventum (SOLV): A comparison of their P/E ratio against the Health Care Equipment & Services industry group benchmark.

P/S Ratio (TTM)

On P/S ratio, both Encompass Health (EHC) at 2.13 and Solventum (SOLV) at 1.88 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

SOLV

Health Care Equipment & Services industry group

1.88

Max: 8.80
Q3: 4.32
Median: 2.13
SOLV: 1.88
Q1: 1.10
Min: 0.03

Encompass Health (EHC) vs. Solventum (SOLV): A comparison of their P/S ratio against the Health Care Equipment & Services industry group benchmark.

P/B Ratio (MRQ)

On P/B ratio, both Encompass Health (EHC) at 5.04 and Solventum (SOLV) at 3.20 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

SOLV

Health Care Equipment & Services industry group

3.20

Max: 11.68
Q3: 6.12
SOLV: 3.20
Median: 3.00
Q1: 1.73
Min: -1.31

Encompass Health (EHC) vs. Solventum (SOLV): 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 Solventum (SOLV)
Metric	EHC	SOLV
P/E Ratio (TTM)	22.01	101.55
P/S Ratio (TTM)	2.13	1.88
P/B Ratio (MRQ)	5.04	3.20
Free Cash Flow Yield (TTM)	1.97%	1.31%