Analyzing Enhabit (NYSE:EHAB) and Agilon Health (NYSE:AGL)

Agilon Health (NYSE:AGL) and Enhabit (NYSE:EHAB) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, dividends, analyst recommendations, earnings and institutional ownership.

Earnings & Valuation

This table compares Agilon Health and Enhabit”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Agilon Health	$5.93 billion	0.05	-$391.35 million	($0.95)	-0.69
Enhabit	$1.06 billion	0.65	-$156.20 million	($0.25)	-54.44

Enhabit has lower revenue, but higher earnings than Agilon Health. Enhabit is trading at a lower price-to-earnings ratio than Agilon Health, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Agilon Health and Enhabit’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Agilon Health	-6.60%	-120.82%	-24.89%
Enhabit	-0.43%	4.67%	2.20%

Volatility & Risk

Agilon Health has a beta of 0.11, suggesting that its stock price is 89% less volatile than the S&P 500. Comparatively, Enhabit has a beta of 1.56, suggesting that its stock price is 56% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Agilon Health and Enhabit, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Agilon Health	2	11	3	0	2.06
Enhabit	1	5	3	0	2.22

Agilon Health presently has a consensus price target of $2.18, suggesting a potential upside of 229.60%. Enhabit has a consensus price target of $13.31, suggesting a potential downside of 2.17%. Given Agilon Health’s higher possible upside, equities research analysts plainly believe Agilon Health is more favorable than Enhabit.

Summary

Enhabit beats Agilon Health on 8 of the 11 factors compared between the two stocks.

About Agilon Health

agilon health, inc. provides healthcare services for seniors through primary care physicians in the communities of the United States. It offers a platform that manages the total healthcare needs of the patients by subscription-like per-member per-month. The company was formerly known as Agilon Health Topco, Inc. and changed its name to agilon health, inc. in March 2021. agilon health, inc. was founded in 2016 and is based in Austin, Texas.

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.