Enhabit (NYSE:EHAB – Get Rating) and LHC Group (NASDAQ:LHCG – Get Rating) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, valuation, analyst recommendations, risk, institutional ownership and dividends.
Institutional and Insider Ownership
28.7% of Enhabit shares are owned by institutional investors. Comparatively, 87.8% of LHC Group shares are owned by institutional investors. 4.8% of LHC Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This table compares Enhabit and LHC Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Enhabit||$1.11 billion||0.74||$111.10 million||N/A||N/A|
|LHC Group||$2.22 billion||2.29||$115.73 million||$2.37||69.02|
LHC Group has higher revenue and earnings than Enhabit.
This is a breakdown of recent ratings for Enhabit and LHC Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Enhabit currently has a consensus price target of $18.00, suggesting a potential upside of 9.76%. LHC Group has a consensus price target of $167.33, suggesting a potential upside of 2.30%. Given Enhabit’s higher possible upside, equities research analysts plainly believe Enhabit is more favorable than LHC Group.
LHC Group beats Enhabit on 8 of the 10 factors compared between the two stocks.
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 also 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. As of March 31, 2022, it operated in 252 home health agencies and 99 hospice agencies across 34 states. 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 incorporated in 2014 and is headquartered in Dallas, Texas. As of July 1, 2022, Enhabit, Inc. operates as a standalone company.
About LHC Group
LHC Group, Inc., a health care provider, specializes in the post-acute continuum of care primarily for Medicare beneficiaries in the United States. It operates through five segments: Home Health Services, Hospice Services, Home and Community-Based Services, Facility-Based Services, and Healthcare Innovations (HCI). The Home Health Services segment offers skilled nursing, medically oriented social services and physical, occupational, and speech therapy. The Hospice Services segment provides pain and symptom management accompanied by palliative medication, emotional and spiritual support, inpatient and respite care, homemaker services, dietary counseling, family bereavement counseling, and social worker visits. Its Home and Community-Based Services segment offers range of services, such as assistance with grooming, medication reminders, meal preparation, assistance with feeding, light housekeeping, respite care, transportation, and errand. The Facility-Based Services segment treats patients with severe medical conditions who require a high-level of care and frequent monitoring by physicians and other clinical personnel. This segment serves patients suffering from respiratory failure, neuromuscular and cardiac disorders, non-healing wounds, renal disorders, cancer, head and neck injuries, and mental disorders, as well as treats patients diagnosed with musculoskeletal impairments; and operates nursing facilities, family health center, rural health clinic, and physician practice, as well as offers physical therapy services. The HCI segment provides strategic health management services to accountable care organizations. As of December 31, 2021, it operated 557 home health services locations, 170 hospice locations, 136 community-based service locations, 11 long-term acute care hospitals with 12 locations, and 14 HCI locations. The company was founded in 1994 and is based in Lafayette, Louisiana.
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