Auna (NYSE:AUNA – Get Free Report) and Encompass Health (NYSE:EHC – 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 dividends, valuation, earnings, institutional ownership, analyst recommendations, risk and profitability.
Valuation & Earnings
This table compares Auna and Encompass Health”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Auna | $4.67 billion | 0.08 | $27.39 million | $0.07 | 76.14 |
| Encompass Health | $6.21 billion | 2.04 | $566.20 million | $6.14 | 20.91 |
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.
Volatility and Risk
Auna has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500. Comparatively, Encompass Health has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500.
Insider and Institutional Ownership
97.3% of Encompass Health shares are owned by institutional investors. 1.8% of Encompass Health shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Auna and Encompass Health’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Auna | 0.44% | 12.88% | 3.24% |
| Encompass Health | 10.01% | 18.08% | 8.22% |
Analyst Recommendations
This is a summary of recent recommendations for Auna and Encompass Health, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Auna | 1 | 2 | 1 | 1 | 2.40 |
| Encompass Health | 0 | 1 | 5 | 1 | 3.00 |
Auna currently has a consensus price target of $6.97, indicating a potential upside of 30.71%. Encompass Health has a consensus price target of $148.50, indicating a potential upside of 15.67%. Given Auna’s higher possible upside, research analysts plainly believe Auna is more favorable than Encompass Health.
Summary
Encompass Health beats Auna on 12 of the 14 factors compared between the two stocks.
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.
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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