Investment Comparison: DaVita vs. Encompass Health
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Source: NASDAQ.COM
- Market Share and Revenue: DaVita operates over 3,200 dialysis centers globally, serving approximately 295,000 patients, with FY 2025 revenue nearing $13.6 billion, reflecting a 6.5% year-over-year growth that underscores its strong market position in kidney care.
- Profitability and Risks: Despite DaVita's net income of $746.8 million and a net margin of about 5.5%, its heavy reliance on government reimbursements (accounting for 68% of U.S. dialysis patient service revenue) adds significant business risk, particularly in light of potential policy shifts.
- Expansion and Growth: Encompass Health operates 173 inpatient rehabilitation hospitals across the U.S., generating approximately $5.9 billion in revenue for FY 2025, marking a 10.5% growth, which indicates robust expansion and improved profitability in the post-acute care market.
- Financial Health and Investment Potential: Encompass Health's net income reached nearly $566.2 million with a net margin of 9.5%, and its lower debt-to-equity ratio (around 1.1x) along with free cash flow of approximately $439.2 million provides ample funding for future expansion, showcasing its strong financial health.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy DVA?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on DVA
Wall Street analysts forecast DVA stock price to fall
5 Analyst Rating
1 Buy
3 Hold
1 Sell
Hold
Current: 210.580
Low
144.00
Averages
162.50
High
190.00
Current: 210.580
Low
144.00
Averages
162.50
High
190.00
About DVA
DaVita Inc. is a healthcare provider focused on transforming care delivery to improve the quality of life for patients globally. The Company is a provider of kidney care services in the United States. Its United States dialysis (U.S. dialysis) and related lab services business treats patients with chronic kidney failure and end-stage kidney disease (ESKD). The Company's robust platform delivers kidney care services and includes established nephrology and payor relationships. The Company's international operations provide dialysis and administrative services to a total of outpatient dialysis centers. The Company's U.S. integrated kidney care (IKC) business provides integrated care and disease management services to patients in risk-based integrated care arrangements and to additional patients in other integrated care arrangements across the United States. It also maintains a few other ancillary services and investments outside its U.S. dialysis, U.S. IKC, or international operations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Investment Comparison: DaVita vs. Encompass Health
- Market Share and Revenue: DaVita operates over 3,200 dialysis centers globally, serving approximately 295,000 patients, with FY 2025 revenue nearing $13.6 billion, reflecting a 6.5% year-over-year growth that underscores its strong market position in kidney care.
- Profitability and Risks: Despite DaVita's net income of $746.8 million and a net margin of about 5.5%, its heavy reliance on government reimbursements (accounting for 68% of U.S. dialysis patient service revenue) adds significant business risk, particularly in light of potential policy shifts.
- Expansion and Growth: Encompass Health operates 173 inpatient rehabilitation hospitals across the U.S., generating approximately $5.9 billion in revenue for FY 2025, marking a 10.5% growth, which indicates robust expansion and improved profitability in the post-acute care market.
- Financial Health and Investment Potential: Encompass Health's net income reached nearly $566.2 million with a net margin of 9.5%, and its lower debt-to-equity ratio (around 1.1x) along with free cash flow of approximately $439.2 million provides ample funding for future expansion, showcasing its strong financial health.
See More
DaVita, Five Below, and Pitney Bowes Earnings Estimates Rise
- DaVita Earnings Boost: DaVita Inc. (DVA) has seen its Zacks Consensus Estimate for current year earnings increase by 6.4% over the last 60 days, indicating strong performance in the kidney dialysis market and suggesting potential stock price appreciation.
- Five Below Growth Potential: Five Below, Inc. (FIVE) also holds a Zacks Rank #1, with an 8.1% increase in earnings estimates over the past 60 days, reflecting enhanced competitiveness in the specialty retail sector, which may attract more investor interest.
- Pitney Bowes Earnings Surge: Pitney Bowes Inc. (PBI) has experienced an 11% rise in its current year earnings estimates according to Zacks over the last 60 days, showcasing robust growth in the shipping and mailing services sector, likely boosting market confidence and stock performance.
- Industry Comparison Advantage: DaVita's PEG ratio stands at 0.65, Five Below at 1.09, and Pitney Bowes at 0.75, all indicating valuation advantages compared to industry averages, which may draw increased investor attention to these companies.
See More
BMO and Other Financial Giants Reach New Stock Highs
- Market Rebound Signal: On Friday, BMO, Astronics, DaVita, and Intercorp Financial all reached new stock highs, indicating signs of market stabilization and recovery after recent volatility, which may attract more investor interest.
- BMO's Strong Performance: As one of Canada's largest banks, BMO's stock increase reflects its robust financial performance and market confidence, potentially further boosting its market share in the financial services sector.
- Astronics Growth Momentum: The new high in Astronics' stock price indicates sustained demand in the aerospace electronics and power systems sectors, enhancing the company's competitiveness in the recovering aviation industry.
- DaVita and Intercorp's Market Performance: The stock price increases for DaVita and Intercorp Financial demonstrate a strong recovery in the healthcare and financial services industries, potentially providing new investment opportunities for investors.
See More
SpaceX IPO Set to Break Records with $75 Billion Valuation
- SpaceX IPO Expectations: SpaceX is set to go public on Friday with a valuation of $75 billion, marking the largest IPO in history, which is expected to inject significant capital into the market, thereby boosting investor confidence and driving growth in related sectors.
- IPO Market Dynamics: So far in 2023, 71 companies have gone public, raising nearly $36 billion, indicating strong demand for emerging enterprises, and SpaceX's IPO is likely to intensify this trend, attracting more investor interest in the tech sector.
- ARK Fund Performance: The ARK Venture Fund holds approximately 11% of SpaceX, with a 4% increase over the past month and over 70% year-to-date, reflecting strong market confidence in SpaceX's growth potential, which may attract more institutional investors.
- Related Stock Performance: Several space-related stocks, such as Iridium Communications and Virgin Galactic, have surged over 100% and 96% in the past three months, respectively, demonstrating investor enthusiasm for the space industry, and SpaceX's IPO is expected to further fuel this investment frenzy.
See More
Buffett's Investment Strategy and Healthcare Opportunities
- Investment Legacy: Warren Buffett has led Berkshire Hathaway to market-beating returns over 60 years by focusing on industries and companies with competitive advantages, and new CEO Greg Abel has pledged to continue this investment philosophy.
- Healthcare Sector Absence: Despite a diverse portfolio, Berkshire Hathaway is almost entirely absent from the healthcare sector, holding only kidney care giant DaVita, which Buffett added in 2011, while Abel closed the position in UnitedHealth Group in Q1 this year.
- Healthcare Investment Opportunities: The healthcare industry offers a wide range of investment options, with aggressive investors potentially targeting high-growth pharmaceutical companies like Eli Lilly, while conservative investors may prefer dividend-paying companies like Johnson & Johnson and Abbott Laboratories for steady earnings growth.
- Independent Investment Decisions: While it is valuable to follow the investment decisions of Buffett and Abel, investors should also consider the high-potential healthcare sector and make independent investment choices to capitalize on growth opportunities in this field.
See More
Buffett and Abel's Investment Strategies
- Investment Legacy: Warren Buffett has led Berkshire Hathaway to market-beating returns over the past sixty years, and new CEO Greg Abel promises to continue this successful path, demonstrating stability and continuity in the company's leadership.
- Portfolio Analysis: Berkshire Hathaway's largest holding is Apple, and although Buffett typically avoids tech stocks, he opened a position in Alphabet last year, with Abel increasing it in Q1 this year, indicating a cautious interest in the tech sector.
- Healthcare Sector Absence: Despite a diverse portfolio, the healthcare sector is almost entirely absent, with only DaVita added in 2011, and Abel closing the position in UnitedHealth Group in Q1, reflecting a potential missed growth opportunity in this vital industry.
- Independent Investor Thinking: While Buffett and Abel's investment strategies are worth following, investors should make independent decisions based on their own needs and resources, as the healthcare sector offers diverse investment opportunities, particularly in biotech and pharmaceuticals, which could yield significant returns.
See More
Investment Comparison: DaVita vs. Encompass Health
- Market Share and Revenue: DaVita operates over 3,200 dialysis centers globally, serving approximately 295,000 patients, with FY 2025 revenue nearing $13.6 billion, reflecting a 6.5% year-over-year growth that underscores its strong market position in kidney care.
- Profitability and Risks: Despite DaVita's net income of $746.8 million and a net margin of about 5.5%, its heavy reliance on government reimbursements (accounting for 68% of U.S. dialysis patient service revenue) adds significant business risk, particularly in light of potential policy shifts.
- Expansion and Growth: Encompass Health operates 173 inpatient rehabilitation hospitals across the U.S., generating approximately $5.9 billion in revenue for FY 2025, marking a 10.5% growth, which indicates robust expansion and improved profitability in the post-acute care market.
- Financial Health and Investment Potential: Encompass Health's net income reached nearly $566.2 million with a net margin of 9.5%, and its lower debt-to-equity ratio (around 1.1x) along with free cash flow of approximately $439.2 million provides ample funding for future expansion, showcasing its strong financial health.
See More
DaVita, Five Below, and Pitney Bowes Earnings Estimates Rise
- DaVita Earnings Boost: DaVita Inc. (DVA) has seen its Zacks Consensus Estimate for current year earnings increase by 6.4% over the last 60 days, indicating strong performance in the kidney dialysis market and suggesting potential stock price appreciation.
- Five Below Growth Potential: Five Below, Inc. (FIVE) also holds a Zacks Rank #1, with an 8.1% increase in earnings estimates over the past 60 days, reflecting enhanced competitiveness in the specialty retail sector, which may attract more investor interest.
- Pitney Bowes Earnings Surge: Pitney Bowes Inc. (PBI) has experienced an 11% rise in its current year earnings estimates according to Zacks over the last 60 days, showcasing robust growth in the shipping and mailing services sector, likely boosting market confidence and stock performance.
- Industry Comparison Advantage: DaVita's PEG ratio stands at 0.65, Five Below at 1.09, and Pitney Bowes at 0.75, all indicating valuation advantages compared to industry averages, which may draw increased investor attention to these companies.
See More
BMO and Other Financial Giants Reach New Stock Highs
- Market Rebound Signal: On Friday, BMO, Astronics, DaVita, and Intercorp Financial all reached new stock highs, indicating signs of market stabilization and recovery after recent volatility, which may attract more investor interest.
- BMO's Strong Performance: As one of Canada's largest banks, BMO's stock increase reflects its robust financial performance and market confidence, potentially further boosting its market share in the financial services sector.
- Astronics Growth Momentum: The new high in Astronics' stock price indicates sustained demand in the aerospace electronics and power systems sectors, enhancing the company's competitiveness in the recovering aviation industry.
- DaVita and Intercorp's Market Performance: The stock price increases for DaVita and Intercorp Financial demonstrate a strong recovery in the healthcare and financial services industries, potentially providing new investment opportunities for investors.
See More
SpaceX IPO Set to Break Records with $75 Billion Valuation
- SpaceX IPO Expectations: SpaceX is set to go public on Friday with a valuation of $75 billion, marking the largest IPO in history, which is expected to inject significant capital into the market, thereby boosting investor confidence and driving growth in related sectors.
- IPO Market Dynamics: So far in 2023, 71 companies have gone public, raising nearly $36 billion, indicating strong demand for emerging enterprises, and SpaceX's IPO is likely to intensify this trend, attracting more investor interest in the tech sector.
- ARK Fund Performance: The ARK Venture Fund holds approximately 11% of SpaceX, with a 4% increase over the past month and over 70% year-to-date, reflecting strong market confidence in SpaceX's growth potential, which may attract more institutional investors.
- Related Stock Performance: Several space-related stocks, such as Iridium Communications and Virgin Galactic, have surged over 100% and 96% in the past three months, respectively, demonstrating investor enthusiasm for the space industry, and SpaceX's IPO is expected to further fuel this investment frenzy.
See More
Buffett's Investment Strategy and Healthcare Opportunities
- Investment Legacy: Warren Buffett has led Berkshire Hathaway to market-beating returns over 60 years by focusing on industries and companies with competitive advantages, and new CEO Greg Abel has pledged to continue this investment philosophy.
- Healthcare Sector Absence: Despite a diverse portfolio, Berkshire Hathaway is almost entirely absent from the healthcare sector, holding only kidney care giant DaVita, which Buffett added in 2011, while Abel closed the position in UnitedHealth Group in Q1 this year.
- Healthcare Investment Opportunities: The healthcare industry offers a wide range of investment options, with aggressive investors potentially targeting high-growth pharmaceutical companies like Eli Lilly, while conservative investors may prefer dividend-paying companies like Johnson & Johnson and Abbott Laboratories for steady earnings growth.
- Independent Investment Decisions: While it is valuable to follow the investment decisions of Buffett and Abel, investors should also consider the high-potential healthcare sector and make independent investment choices to capitalize on growth opportunities in this field.
See More
Buffett and Abel's Investment Strategies
- Investment Legacy: Warren Buffett has led Berkshire Hathaway to market-beating returns over the past sixty years, and new CEO Greg Abel promises to continue this successful path, demonstrating stability and continuity in the company's leadership.
- Portfolio Analysis: Berkshire Hathaway's largest holding is Apple, and although Buffett typically avoids tech stocks, he opened a position in Alphabet last year, with Abel increasing it in Q1 this year, indicating a cautious interest in the tech sector.
- Healthcare Sector Absence: Despite a diverse portfolio, the healthcare sector is almost entirely absent, with only DaVita added in 2011, and Abel closing the position in UnitedHealth Group in Q1, reflecting a potential missed growth opportunity in this vital industry.
- Independent Investor Thinking: While Buffett and Abel's investment strategies are worth following, investors should make independent decisions based on their own needs and resources, as the healthcare sector offers diverse investment opportunities, particularly in biotech and pharmaceuticals, which could yield significant returns.
See More
