Contrasting Xcelerate (OTCMKTS:XCRT) and Encompass Health (NYSE:EHC)

Xcelerate (OTCMKTS:XCRT) and Encompass Health (NYSE:EHC) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, earnings, risk and analyst recommendations.

Profitability

This table compares Xcelerate and Encompass Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Xcelerate	N/A	N/A	N/A
Encompass Health	8.97%	17.63%	7.33%

Valuation & Earnings

This table compares Xcelerate and Encompass Health”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xcelerate	N/A	N/A	N/A	N/A	N/A
Encompass Health	$5.37 billion	2.24	$455.70 million	$4.84	24.64

Encompass Health has higher revenue and earnings than Xcelerate.

Institutional & Insider Ownership

97.3% of Encompass Health shares are owned by institutional investors. 2.1% of Encompass Health shares are owned 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.

Volatility and Risk

Xcelerate has a beta of 4.08, meaning that its share price is 308% more volatile than the S&P 500. Comparatively, Encompass Health has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Xcelerate and Encompass Health, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xcelerate	0	0	0	0	0.00
Encompass Health	0	0	7	2	3.22

Encompass Health has a consensus price target of $127.00, indicating a potential upside of 6.50%. Given Encompass Health’s stronger consensus rating and higher possible upside, analysts plainly believe Encompass Health is more favorable than Xcelerate.

Summary

Encompass Health beats Xcelerate on 10 of the 11 factors compared between the two stocks.

About Xcelerate

Xcelerate Inc. acquires engineering/patents and applies to early-stage medical technology companies. The company engages in the formulation, packaging and marketing of consumer health and beauty, and clinically tested skin care products; development of artificial intelligence and virtual health technology to assist patients; owning and licensing the rights to various forms of medical equipment. It also provides Ceramedx, a natural plant based therapeutic skin care product; Earth Science Beauty, which offers natural facial skincare targeted to specific skin types. The company was formerly known as Union Dental Holdings, Inc. and changed its name to Xcelerate Inc. Xcelerate Inc. was incorporated in 1996 is based in Mauldin, South Carolina.

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.