Enhabit (NYSE:EHAB) vs. CVS Health (NYSE:CVS) Head-To-Head Comparison
by Danessa Lincoln · The Markets DailyCVS Health (NYSE:CVS – Get Free Report) and Enhabit (NYSE:EHAB – Get Free Report) are both medical companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.
Volatility and Risk
CVS Health has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500. Comparatively, Enhabit has a beta of 1.67, suggesting that its stock price is 67% more volatile than the S&P 500.
Profitability
This table compares CVS Health and Enhabit’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CVS Health | 0.12% | 11.45% | 3.40% |
| Enhabit | -1.14% | 3.91% | 1.82% |
Earnings and Valuation
This table compares CVS Health and Enhabit”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CVS Health | $372.81 billion | 0.27 | $4.61 billion | $0.38 | 210.07 |
| Enhabit | $1.03 billion | 0.45 | -$156.20 million | ($0.25) | -37.21 |
CVS Health has higher revenue and earnings than Enhabit. Enhabit is trading at a lower price-to-earnings ratio than CVS Health, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for CVS Health and Enhabit, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CVS Health | 0 | 4 | 20 | 2 | 2.92 |
| Enhabit | 1 | 1 | 2 | 0 | 2.25 |
CVS Health presently has a consensus price target of $94.67, suggesting a potential upside of 18.59%. Enhabit has a consensus price target of $8.50, suggesting a potential downside of 8.62%. Given CVS Health’s stronger consensus rating and higher probable upside, equities analysts plainly believe CVS Health is more favorable than Enhabit.
Insider and Institutional Ownership
80.7% of CVS Health shares are held by institutional investors. 1.2% of CVS Health shares are held by insiders. Comparatively, 3.4% of Enhabit shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Summary
CVS Health beats Enhabit on 12 of the 15 factors compared between the two stocks.
About CVS Health
CVS Health Corporation provides health solutions in the United States. It operates through Health Care Benefits, Health Services, and Pharmacy & Consumer Wellness segments. The Health Care Benefits segment offers traditional, voluntary, and consumer-directed health insurance products and related services. It serves employer groups, individuals, college students, part-time and hourly workers, health plans, health care providers, governmental units, government-sponsored plans, labor groups, and expatriates. The Health Services segment offers pharmacy benefit management solutions, including plan design and administration, formulary management, retail pharmacy network management, specialty and mail order pharmacy, clinical, disease management, and medical spend management services. It serves employers, insurance companies, unions, government employee groups, health plans, prescription drug plans, Medicaid managed care plans, CMS, plans offered on public health insurance, and other sponsors of health benefit plans. The Pharmacy & Consumer Wellness segment sells prescription and over-the-counter drugs, consumer health and beauty products, and personal care products. This segment also distributes prescription drugs; and provides related pharmacy consulting and other ancillary services to care facilities and other care settings. It operates online retail pharmacy websites, LTC pharmacies and on-site pharmacies, retail specialty pharmacy stores, compounding pharmacies and branches for infusion and enteral nutrition services. The company was formerly known as CVS Caremark Corporation and changed its name to CVS Health Corporation in September 2014. CVS Health Corporation was incorporated in 1996 and is headquartered in Woonsocket, Rhode Island.
About Enhabit
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 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. 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 founded in 1998 and is based in Dallas, Texas.