Encompass Health (NYSE:EHC – Get Free Report) and P3 Health Partners (NASDAQ:PIII – Get Free Report) are both healthcare companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, valuation, earnings, profitability, analyst recommendations, dividends and institutional ownership.
Valuation & Earnings
This table compares Encompass Health and P3 Health Partners”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Encompass Health | $5.94 billion | 2.05 | $566.20 million | $6.14 | 20.09 |
| P3 Health Partners | $1.46 billion | 0.02 | -$147.95 million | ($33.00) | -0.15 |
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Encompass Health and P3 Health Partners, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Encompass Health | 0 | 1 | 5 | 1 | 3.00 |
| P3 Health Partners | 1 | 2 | 1 | 0 | 2.00 |
Encompass Health presently has a consensus target price of $148.50, indicating a potential upside of 20.41%. P3 Health Partners has a consensus target price of $17.00, indicating a potential upside of 243.43%. Given P3 Health Partners’ higher possible upside, analysts clearly believe P3 Health Partners is more favorable than Encompass Health.
Insider and Institutional Ownership
97.3% of Encompass Health shares are held by institutional investors. Comparatively, 7.7% of P3 Health Partners shares are held by institutional investors. 1.8% of Encompass Health shares are held by insiders. Comparatively, 10.9% of P3 Health Partners shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Encompass Health and P3 Health Partners’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Encompass Health | 10.01% | 18.08% | 8.22% |
| P3 Health Partners | -6.55% | N/A | -16.40% |
Risk and Volatility
Encompass Health has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500. Comparatively, P3 Health Partners has a beta of 1.7, indicating that its share price is 70% more volatile than the S&P 500.
Summary
Encompass Health beats P3 Health Partners on 12 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 P3 Health Partners
P3 Health Partners Inc., a patient-centered and physician-led population health management company, provides superior care services in the United States. It operates clinics and wellness centers. P3 Health Partners Inc. was founded in 2020 and is based in Henderson, Nevada.
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