Encompass Health (NYSE: EHC) and Kindred Healthcare (NYSE:KND) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, earnings and profitability.
This is a breakdown of recent ratings for Encompass Health and Kindred Healthcare, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Encompass Health pays an annual dividend of $1.00 per share and has a dividend yield of 1.7%. Kindred Healthcare does not pay a dividend. Encompass Health pays out 37.3% of its earnings in the form of a dividend.
Valuation and Earnings
This table compares Encompass Health and Kindred Healthcare’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Encompass Health||$3.97 billion||1.44||$256.30 million||$2.68||21.78|
|Kindred Healthcare||$6.03 billion||0.14||-$698.35 million||($7.97)||-1.19|
Encompass Health has higher earnings, but lower revenue than Kindred Healthcare. Kindred 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.
Risk and Volatility
Encompass Health has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500. Comparatively, Kindred Healthcare has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500.
Insider & Institutional Ownership
91.4% of Encompass Health shares are held by institutional investors. Comparatively, 89.0% of Kindred Healthcare shares are held by institutional investors. 1.6% of Encompass Health shares are held by insiders. Comparatively, 3.0% of Kindred Healthcare shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This table compares Encompass Health and Kindred Healthcare’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Encompass Health beats Kindred Healthcare on 11 of the 16 factors compared between the two stocks.
Encompass Health Company Profile
Encompass Health Corporation, formerly HealthSouth Corporation, is a provider of post-acute healthcare services, offering both facility-based and home-based post-acute services in 35 states and Puerto Rico through its network of inpatient rehabilitation hospitals, home health agencies and hospice agencies. The Company manages its operations through segments, including inpatient rehabilitation, and home health and hospice. It is an owner and operator of inpatient rehabilitation hospitals. It provides specialized rehabilitative treatment on both an inpatient and outpatient basis. It offers its home health and hospice services through Encompass Home Health and Hospice business (Encompass). Encompass operates home health and hospice agencies in 25 states, with concentrations in the Southeast, Oklahoma, and Texas. As of December 31, 2016, the Company operated 123 inpatient rehabilitation hospitals.
Kindred Healthcare Company Profile
Kindred Healthcare, Inc., incorporated on March 27, 1998, is a healthcare services company. The Company, through its subsidiaries, operates transitional care (TC) hospitals, a home health, hospice and community care business, inpatient rehabilitation hospitals (IRFs), a contract rehabilitation services business, nursing centers and assisted living facilities across the United States. The Company operates through divisions: the Kindred at Home division, the hospital division, the Kindred Rehabilitation Services division and the nursing center division. These divisions represent six segments: home health services, hospice services, hospitals, Kindred Hospital Rehabilitation Services, RehabCare and nursing centers. The home health services and hospice services operating segments are contained within the Kindred at Home division while the Kindred Hospital Rehabilitation Services and RehabCare operating segments are both contained within the Kindred Rehabilitation Services division.
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