Ontrak (NASDAQ:OTRK – Get Free Report) and Encompass Health (NYSE:EHC – Get Free Report) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, earnings, institutional ownership and profitability.
Analyst Recommendations
This is a breakdown of current recommendations for Ontrak and Encompass Health, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ontrak | 0 | 0 | 1 | 0 | 3.00 |
| Encompass Health | 0 | 0 | 8 | 1 | 3.11 |
Ontrak currently has a consensus price target of $3.00, indicating a potential upside of 13,536.36%. Encompass Health has a consensus price target of $139.86, indicating a potential upside of 11.73%. Given Ontrak’s higher probable upside, analysts clearly believe Ontrak is more favorable than Encompass Health.
Risk and Volatility
Insider and Institutional Ownership
12.9% of Ontrak shares are owned by institutional investors. Comparatively, 97.3% of Encompass Health shares are owned by institutional investors. 1.9% of Ontrak shares are owned by company insiders. Comparatively, 2.1% of Encompass Health shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Profitability
This table compares Ontrak and Encompass Health’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ontrak | -274.20% | -269.88% | -128.35% |
| Encompass Health | 9.22% | 17.83% | 7.68% |
Valuation and Earnings
This table compares Ontrak and Encompass Health”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ontrak | $10.18 million | 0.01 | -$25.49 million | ($15.81) | 0.00 |
| Encompass Health | $5.37 billion | 2.35 | $455.70 million | $5.11 | 24.50 |
Encompass Health has higher revenue and earnings than Ontrak. Ontrak is trading at a lower price-to-earnings ratio than Encompass Health, indicating that it is currently the more affordable of the two stocks.
Summary
Encompass Health beats Ontrak on 13 of the 15 factors compared between the two stocks.
About Ontrak
Ontrak, Inc. operates as an artificial intelligence powered, telehealth-enabled, and virtualized healthcare company that provides in-person services to third-party payors in the United States. Its technology-enabled platform predicts people whose chronic disease will improve with behavior change, recommends effective care pathways that people are willing to follow, and engages and guides them to and through the care they need. The company's technology enabled OnTrak program provides healthcare solutions to members with behavioral conditions that cause or exacerbate chronic medical conditions, such as diabetes, hypertension, coronary artery disease, chronic obstructive pulmonary disease, and congestive heart failure. The OnTrak integrates evidence-based psychosocial and medical interventions delivered in-person or via telehealth along with care coaching and in-market community care coordinators, who address the social and environmental determinants of health. The company was formerly known as Catasys, Inc. and changed its name to Ontrak, Inc. in July 2020. Ontrak, Inc. was incorporated in 2003 and is headquartered in Miami, Florida.
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.
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