P3 Health Partners (NASDAQ:PIII – 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 businesses based on the strength of their dividends, analyst recommendations, valuation, institutional ownership, earnings, profitability and risk.
Risk & Volatility
P3 Health Partners has a beta of 1.7, indicating that its stock price is 70% more volatile than the S&P 500. Comparatively, Encompass Health has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500.
Valuation and Earnings
This table compares P3 Health Partners and Encompass Health”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| P3 Health Partners | $1.46 billion | 0.03 | -$147.95 million | ($33.00) | -0.19 |
| Encompass Health | $5.94 billion | 2.01 | $566.20 million | $6.14 | 19.73 |
Encompass Health has higher revenue and earnings than P3 Health Partners. P3 Health Partners is trading at a lower price-to-earnings ratio than Encompass Health, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares P3 Health Partners and Encompass Health’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| P3 Health Partners | -6.55% | N/A | -16.40% |
| Encompass Health | 10.01% | 18.08% | 8.22% |
Insider and Institutional Ownership
7.7% of P3 Health Partners shares are owned by institutional investors. Comparatively, 97.3% of Encompass Health shares are owned by institutional investors. 10.9% of P3 Health Partners shares are owned by company insiders. Comparatively, 1.8% of Encompass Health shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current ratings and price targets for P3 Health Partners and Encompass Health, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| P3 Health Partners | 1 | 2 | 1 | 0 | 2.00 |
| Encompass Health | 0 | 1 | 5 | 1 | 3.00 |
P3 Health Partners presently has a consensus price target of $17.00, suggesting a potential upside of 175.53%. Encompass Health has a consensus price target of $148.50, suggesting a potential upside of 22.59%. Given P3 Health Partners’ higher possible upside, analysts clearly believe P3 Health Partners is more favorable than Encompass Health.
Summary
Encompass Health beats P3 Health Partners on 12 of the 15 factors compared between the two stocks.
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.
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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