EHC vs. STE: Encompass Health vs. STERIS Stock Comparison
How do Encompass Health (EHC) and STERIS (STE) 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 STERIS (STE) both fall under the Health Care Equipment & Services industry group, but EHC is classified in Health Care Providers & Services while STE is classified in Health Care Equipment & Supplies.
| Profile Item | EHC | STE |
|---|---|---|
| Name | Encompass Health Corporation | STERIS plc |
| 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 Equipment |
| Market Capitalization | 13.50 billion USD | 24.50 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | NYSE |
| Listing Date | September 24, 1986 | June 1, 1992 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | EHC | STE |
|---|---|---|
| Total Return (1Y) | 22.16% | -1.85% |
| Total Return (3Y, Annualized) | 30.96% | 9.57% |
| Total Return (5Y, Annualized) | 23.55% | 3.26% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | EHC | STE |
|---|---|---|
| Volatility (1Y, Annualized) | 30.54% | 26.39% |
| Beta (5Y) | 0.82 | 0.81 |
| Max Drawdown (5Y) | -27.33% | -36.18% |
| Avg. Volume (3M) | 996.79K | 694.02K |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | EHC | STE |
|---|---|---|
| Sharpe Ratio (1Y) | 0.59 | -0.23 |
| Sortino Ratio (1Y) | 1.08 | -0.34 |
Profitability
ROE (TTM)
Encompass Health (EHC) at 25.11% sits in the top ROE quartile, while STERIS (STE) at 11.61% 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%
STE
Health Care Equipment & Services industry group
11.61%
- Max
- 47.61%
- Q3
- 14.36%
- STE
- 11.61%
- 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 STERIS (STE) at 13.41% 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%
STE
Health Care Equipment & Services industry group
13.41%
- Max
- 29.35%
- STE
- 13.41%
- Q3
- 9.33%
- Median
- 2.18%
- Q1
- -6.29%
- Min
- -28.46%
Operating Margin (TTM)
Both Encompass Health (EHC) at 18.07% and STERIS (STE) at 19.18% 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%
STE
Health Care Equipment & Services industry group
19.18%
- Max
- 35.43%
- STE
- 19.18%
- Q3
- 14.14%
- Median
- 6.81%
- Q1
- -0.28%
- Min
- -16.29%
Profitability Metrics
| Metric | EHC | STE |
|---|---|---|
| ROE (TTM) | 25.11% | 11.61% |
| ROA (TTM) | 10.08% | 7.00% |
| Net Margin (TTM) | 10.17% | 13.41% |
| Operating Margin (TTM) | 18.07% | 19.18% |
| Gross Margin (TTM) | 44.15% | 44.30% |
Growth
Revenue Growth
Both Encompass Health (EHC) at 10.46% and STERIS (STE) at 8.73% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.
EPS Growth
STERIS (STE) at 27.90% 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 STE.
Growth Metrics
| Metric | EHC | STE |
|---|---|---|
| Revenue Growth (YoY) | 10.46% | 8.73% |
| Revenue Growth (3Y CAGR) | 10.92% | 9.38% |
| EPS Growth (YoY) | 24.22% | 27.90% |
| EPS Growth (3Y CAGR) | 27.07% | 94.97% |
Financial Strength
Current Ratio (MRQ)
STERIS (STE) at 2.05 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
STE
Health Care Equipment & Services industry group
2.05
- Max
- 7.59
- Q3
- 4.00
- STE
- 2.05
- Median
- 1.98
- Q1
- 1.37
- Min
- 0.30
Debt / Equity (MRQ)
Both Encompass Health (EHC) at 0.79 and STERIS (STE) at 0.28 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
STE
Health Care Equipment & Services industry group
0.28
- Max
- 1.88
- Q3
- 0.91
- Median
- 0.58
- STE
- 0.28
- Q1
- 0.16
- Min
- 0.00
Financial Strength Metrics
| Metric | EHC | STE |
|---|---|---|
| Current Ratio (MRQ) | 1.09 | 2.05 |
| Debt / Equity (MRQ) | 0.79 | 0.28 |
| Net Debt / EBITDA | 1.79 | 0.91 |
Dividends
Dividend Yield (TTM)
Both Encompass Health (EHC) at 0.55% and STERIS (STE) at 1.02% 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%
STE
Health Care Equipment & Services industry group
1.02%
- STE
- 1.02%
- 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 STERIS (STE) at 30.61% 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%
STE
Health Care Equipment & Services industry group
30.61%
- STE
- 30.61%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | EHC | STE |
|---|---|---|
| Dividend Yield (TTM) | 0.55% | 1.02% |
| Dividend Payout Ratio (TTM) | 12.48% | 30.61% |
Valuation
P/E Ratio (TTM)
Both Encompass Health (EHC) at 22.01 and STERIS (STE) at 29.93 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
STE
Health Care Equipment & Services industry group
29.93
- Max
- 80.41
- Q3
- 47.62
- STE
- 29.93
- Median
- 29.93
- Q1
- 21.19
- Min
- 4.21
P/S Ratio (TTM)
On P/S ratio, both Encompass Health (EHC) at 2.13 and STERIS (STE) at 3.97 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
STE
Health Care Equipment & Services industry group
3.97
- Max
- 8.80
- Q3
- 4.32
- STE
- 3.97
- 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 STERIS (STE) at 3.38 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
STE
Health Care Equipment & Services industry group
3.38
- Max
- 11.68
- Q3
- 6.12
- STE
- 3.38
- Median
- 3.00
- Q1
- 1.73
- Min
- -1.31
Valuation Metrics
| Metric | EHC | STE |
|---|---|---|
| P/E Ratio (TTM) | 22.01 | 29.93 |
| P/S Ratio (TTM) | 2.13 | 3.97 |
| P/B Ratio (MRQ) | 5.04 | 3.38 |
| Free Cash Flow Yield (TTM) | 1.97% | 3.36% |