Head to Head Analysis: Enhabit (NYSE:EHAB) versus Surgery Partners (NASDAQ:SGRY)

Enhabit (NYSE:EHAB) and Surgery Partners (NASDAQ:SGRY) are both small-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, dividends, earnings, risk and profitability.

Volatility & Risk

Enhabit has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500. Comparatively, Surgery Partners has a beta of 1.99, indicating that its stock price is 99% more volatile than the S&P 500.

Profitability

This table compares Enhabit and Surgery Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Enhabit	-0.30%	7.24%	3.48%
Surgery Partners	-2.28%	1.04%	0.41%

Earnings and Valuation

This table compares Enhabit and Surgery Partners”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enhabit	$1.06 billion	0.67	-$4.60 million	($0.09)	-153.39
Surgery Partners	$3.34 billion	0.57	-$77.90 million	($0.60)	-24.13

Enhabit has higher earnings, but lower revenue than Surgery Partners. Enhabit is trading at a lower price-to-earnings ratio than Surgery Partners, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Enhabit and Surgery Partners, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enhabit	1	6	2	0	2.11
Surgery Partners	1	3	8	0	2.58

Enhabit currently has a consensus target price of $13.57, suggesting a potential downside of 1.69%. Surgery Partners has a consensus target price of $22.18, suggesting a potential upside of 53.23%. Given Surgery Partners’ stronger consensus rating and higher probable upside, analysts plainly believe Surgery Partners is more favorable than Enhabit.

About Enhabit

Enhabit, Inc. provides home health and hospice services in the United States. Its home health services include patient education, pain management, wound care and dressing changes, cardiac rehabilitation, infusion therapy, pharmaceutical administration, and skilled observation and assessment services; practices to treat chronic diseases and conditions, including diabetes, hypertension, arthritis, Alzheimer's disease, low vision, spinal stenosis, Parkinson's disease, osteoporosis, complex wound care and chronic pain, along with disease-specific plans for patients with diabetes, congestive heart failure, post-orthopedic surgery, or injury and respiratory diseases; and physical, occupational and speech therapists provide therapy services. The company offers hospice services, including pain and symptom management, palliative and dietary counseling, social worker visits, spiritual counseling, and bereavement counseling services to meet the individual physical, emotional, spiritual, and psychosocial needs of terminally ill patients and their families. The company was formerly known as Encompass Health Home Health Holdings, Inc. and changed its name to Enhabit, Inc. in March 2022. Enhabit, Inc. was founded in 1998 and is based in Dallas, Texas.

About Surgery Partners

Surgery Partners, Inc., together with its subsidiaries, owns and operates a network of surgical facilities and ancillary services in the United States. The company provides ambulatory surgery centers and surgical hospitals that offer non-emergency surgical procedures in various specialties, including orthopedics and pain management, ophthalmology, gastroenterology, and general surgery. It offers diagnostic imaging, laboratory, obstetrics, oncology, pharmacy, physical therapy, and wound care; and ancillary services, including multi-specialty physician practices, urgent care facilities, and anesthesia services. In addition, it offers single- and multi-specialty facilities. Surgery Partners, Inc. was founded in 2004 and is headquartered in Brentwood, Tennessee.