Critical Survey: Encompass Health (NYSE:EHC) versus CareRx (OTCMKTS:CHHHF)

CareRx (OTCMKTS:CHHHFGet Free Report) and Encompass Health (NYSE:EHCGet Free Report) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for CareRx and Encompass Health, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CareRx 0 1 0 0 2.00
Encompass Health 0 0 7 1 3.13

Encompass Health has a consensus target price of $82.56, suggesting a potential upside of 6.80%. Given Encompass Health’s stronger consensus rating and higher possible upside, analysts clearly believe Encompass Health is more favorable than CareRx.

Profitability

This table compares CareRx and Encompass Health’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CareRx N/A N/A N/A
Encompass Health 7.33% 17.69% 6.24%

Institutional and Insider Ownership

92.7% of Encompass Health shares are held by institutional investors. 1.9% of Encompass Health shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares CareRx and Encompass Health’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CareRx N/A N/A N/A N/A N/A
Encompass Health $4.80 billion 1.61 $352.00 million $3.47 22.28

Encompass Health has higher revenue and earnings than CareRx.

Summary

Encompass Health beats CareRx on 10 of the 10 factors compared between the two stocks.

About CareRx

(Get Free Report)

CareRx Corporation, together with its subsidiaries, provides pharmacy services to seniors homes and other congregate care settings in Canada. It serves long-term care homes, retirement homes, assisted living facilities, and group homes. The company was formerly known as Centric Health Corporation and changed its name to CareRx Corporation in June 2020. CareRx Corporation was incorporated in 2001 and is based in Toronto, Canada.

About Encompass Health

(Get Free Report)

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.

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