Encompass Health (NYSE:EHC – Get Free Report) and Auna (NYSE:AUNA – Get Free Report) are both healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.
Profitability
This table compares Encompass Health and Auna’s 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% |
| Auna | 0.44% | 12.88% | 3.24% |
Analyst Ratings
This is a summary of recent ratings and price targets for Encompass Health and Auna, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Encompass Health | 0 | 1 | 5 | 1 | 3.00 |
| Auna | 1 | 2 | 1 | 1 | 2.40 |
Encompass Health presently has a consensus target price of $148.50, suggesting a potential upside of 15.67%. Auna has a consensus target price of $6.97, suggesting a potential upside of 30.71%. Given Auna’s higher possible upside, analysts clearly believe Auna is more favorable than Encompass Health.
Insider and Institutional Ownership
97.3% of Encompass Health shares are held by institutional investors. 1.8% of Encompass Health shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Encompass Health and Auna”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Encompass Health | $6.21 billion | 2.04 | $566.20 million | $6.14 | 20.91 |
| Auna | $4.67 billion | 0.08 | $27.39 million | $0.07 | 76.14 |
Encompass Health has higher revenue and earnings than Auna. Encompass Health is trading at a lower price-to-earnings ratio than Auna, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Encompass Health has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500. Comparatively, Auna has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500.
Summary
Encompass Health beats Auna on 12 of the 14 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 Auna
Auna S.A., a healthcare service provider, operates hospitals and clinics in Mexico, Peru, and Colombia. The company provides prepaid healthcare plans in Peru; and dental and vision plans in Mexico. The company was founded in 1989 and is based in Luxembourg, Luxembourg.
Receive News & Ratings for Encompass Health Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Encompass Health and related companies with MarketBeat.com's FREE daily email newsletter.
