Encompass Health (NYSE:EHC – Get Free Report) and Aveanna Healthcare (NASDAQ:AVAH – Get Free Report) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, analyst recommendations, risk and dividends.
Risk and Volatility
Encompass Health has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500. Comparatively, Aveanna Healthcare has a beta of 2.07, meaning that its stock price is 107% more volatile than the S&P 500.
Earnings & Valuation
This table compares Encompass Health and Aveanna Healthcare”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Encompass Health | $5.94 billion | 1.64 | $566.20 million | $5.54 | 17.65 |
| Aveanna Healthcare | $2.43 billion | 0.59 | $225.03 million | $1.02 | 6.45 |
Encompass Health has higher revenue and earnings than Aveanna Healthcare. Aveanna Healthcare is trading at a lower price-to-earnings ratio than Encompass Health, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Encompass Health and Aveanna Healthcare’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Encompass Health | 9.54% | 18.20% | 8.15% |
| Aveanna Healthcare | 9.25% | 481.69% | 6.08% |
Analyst Recommendations
This is a summary of current recommendations and price targets for Encompass Health and Aveanna Healthcare, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Encompass Health | 0 | 1 | 7 | 2 | 3.10 |
| Aveanna Healthcare | 0 | 5 | 5 | 1 | 2.64 |
Encompass Health currently has a consensus price target of $143.29, indicating a potential upside of 46.53%. Aveanna Healthcare has a consensus price target of $10.56, indicating a potential upside of 60.52%. Given Aveanna Healthcare’s higher probable upside, analysts clearly believe Aveanna Healthcare is more favorable than Encompass Health.
Insider & Institutional Ownership
97.3% of Encompass Health shares are held by institutional investors. Comparatively, 88.0% of Aveanna Healthcare shares are held by institutional investors. 2.0% of Encompass Health shares are held by company insiders. Comparatively, 7.0% of Aveanna Healthcare shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Summary
Encompass Health beats Aveanna Healthcare on 11 of the 15 factors compared between the two stocks.
About Encompass Health
Encompass Health Corporation provides post-acute healthcare services in the United States and Puerto Rico. It owns and operates inpatient rehabilitation hospitals that provide medical, nursing, therapy, and ancillary services. The company provides specialized rehabilitative treatment on an inpatient basis to patients who have experienced physical or cognitive disabilities or injuries due to medical conditions, such as strokes, hip fractures, and various debilitating neurological conditions. It offers services through the Medicare program to federal government, managed care plans and private insurers, state governments, and other patients. The company was formerly known as HealthSouth Corporation and changed its name to Encompass Health Corporation in January 2018. The company was incorporated in 1984 and is based in Birmingham, Alabama.
About Aveanna Healthcare
Aveanna Healthcare Holdings Inc., a diversified home care platform company, provides pediatric and adult healthcare services in the United States. Its patient-centered care delivery platform allows patients to remain in their homes and minimizes the overutilization of high-cost care settings, such as hospitals or skilled nursing facilities. The company operates through three segments: Private Duty Services (PDS), Home Health & Hospice (HHH), and Medical Solutions (MS). The PDS segment offers PDN services, which include in-home skilled nursing services to medically fragile children and adults; nursing services in school settings in which its caregivers accompany patients to school; services to patients in its pediatric day healthcare centers; and employer of record support and personal care services, as well as in-clinic and home-based therapy services, such as physical, occupational, and speech services. The HHH segment provides home health services, including in-home skilled nursing services; physical, occupational, and speech therapy services; and medical social and aide services, as well as hospice services for patients and their families when a life-limiting illness no longer responds to cure-oriented treatments. The MS segment offers enteral nutrition supplies and other products, including formulas, supplies, and pumps to adults and children delivered on a periodic or as-needed basis. The company was incorporated in 2016 and is headquartered in Atlanta, Georgia.
Receive News & Ratings for Encompass Health Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Encompass Health and related companies with MarketBeat.com's FREE daily email newsletter.
