EHC vs. COST

Last updated Jun 3, 2026

EHC (Encompass Health Corporation) and COST (Costco Wholesale Corporation) are both stocks. EHC operates in Medical Care Facilities (Healthcare), while COST operates in Discount Stores (Consumer Defensive). Over the past 5 years, EHC returned 10.15%/yr vs 21.28%/yr for COST. At a 0.28 correlation, their price movements are largely independent.

Performance

EHC vs. COST - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Encompass Health Corporation (EHC) and Costco Wholesale Corporation (COST). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, EHC achieves a -3.96% return, which is significantly lower than COST's 10.97% return.

EHC

• 1D: -1.15%
• 1M: -5.52%
• YTD: -3.96%
• 6M: -10.48%
• 1Y: -15.41%
• 3Y*: 18.29%
• 5Y*: 10.15%
• 10Y*: —

COST

• 1D: 0.86%
• 1M: -5.68%
• YTD: 10.97%
• 6M: 3.79%
• 1Y: -9.20%
• 3Y*: 24.67%
• 5Y*: 21.28%
• 10Y*: 22.25%

*Multi-year figures are annualized to reflect compound growth (CAGR)

EHC vs. COST - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
EHC Encompass Health Corporation	-3.96%	15.67%	39.17%	12.62%	16.77%	-19.90%	21.42%	14.26%	26.89%
COST Costco Wholesale Corporation	10.97%	-5.39%	39.62%	49.00%	-19.05%	51.82%	32.67%	45.70%	10.60%

Correlation

The correlation between EHC and COST is 0.17, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.17
Correlation (3Y) Calculated over the trailing 3-year period	0.26
Correlation (5Y) Calculated over the trailing 5-year period	0.28
Correlation (All Time) Calculated using the full available price history since Jan 2, 2018	0.28

The correlation between EHC and COST shifts across timeframes, from 0.17 (1 year) to 0.28 (5 years), reflecting how their relationship changes across market environments.

Fundamentals

EPS EHC : $5.99 COST : $26.51
PE Ratio EHC : 16.97 COST : 36.00
PEG Ratio EHC : 1.42 COST : 2.81
PS Ratio EHC : 1.70 COST : 1.08
Total Revenue (TTM) EHC : $6.07B COST : $293.59B
Gross Profit (TTM) EHC : $2.44B COST : $11.12B
EBITDA (TTM) EHC : $1.42B COST : $12.48B

Return for Risk

EHC vs. COST — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

EHC

EHC Risk / Return Rank: 16
EHC Sharpe Ratio Rank: 15
EHC Sortino Ratio Rank: 15
EHC Omega Ratio Rank: 15
EHC Calmar Ratio Rank: 19
EHC Martin Ratio Rank: 15

COST

COST Risk / Return Rank: 22
COST Sharpe Ratio Rank: 19
COST Sortino Ratio Rank: 18
COST Omega Ratio Rank: 19
COST Calmar Ratio Rank: 27
COST Martin Ratio Rank: 25

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

EHC vs. COST - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Encompass Health Corporation (EHC) and Costco Wholesale Corporation (COST). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	EHC	COST	Difference
Sharpe ratio Return per unit of total volatility	-0.59	-0.48	-0.11
Sortino ratio Return per unit of downside risk	-0.70	-0.56	-0.14
Omega ratio Gain probability vs. loss probability	0.90	0.93	-0.03
Calmar ratio Return relative to maximum drawdown	-0.59	-0.40	-0.19
Martin ratio Return relative to average drawdown	-1.15	-0.78	-0.37
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

EHC vs. COST - Sharpe Ratio Comparison

The current EHC Sharpe Ratio is -0.59, which is comparable to the COST Sharpe Ratio of -0.48. The chart below compares the historical Sharpe Ratios of EHC and COST, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	EHC	COST	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.59	-0.48	-0.11
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.39	0.94	-0.55
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	1.02	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.47	0.58	-0.11

Drawdowns

EHC vs. COST - Drawdown Comparison

The maximum EHC drawdown since its inception was -39.54%, smaller than the maximum COST drawdown of -53.39%. Use the drawdown chart below to compare losses from any high point for EHC and COST.

Drawdown Indicators

	EHC	COST	Difference
Max Drawdown Largest peak-to-trough decline	-39.54%	-53.39%	+13.85%
Max Drawdown (1Y) Largest decline over 1 year	-26.09%	-19.25%	-6.84%
Max Drawdown (3Y) Largest decline over 3 years	-26.09%	-20.74%	-5.35%
Max Drawdown (5Y) Largest decline over 5 years	-35.10%	-31.40%	-3.70%
Max Drawdown (10Y) Largest decline over 10 years	—	-31.40%	—
Current Drawdown Current decline from peak	-19.85%	-12.80%	-7.05%
Average Drawdown Average peak-to-trough decline	-12.08%	-13.36%	+1.28%
Ulcer Index Depth and duration of drawdowns from previous peaks	13.46%	9.92%	+3.54%

Volatility

EHC vs. COST - Volatility Comparison

The current volatility for Encompass Health Corporation (EHC) is 6.08%, while Costco Wholesale Corporation (COST) has a volatility of 7.99%. This indicates that EHC experiences smaller price fluctuations and is considered to be less risky than COST based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	EHC	COST	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.08%	7.99%	-1.91%
Volatility (6M) Calculated over the trailing 6-month period	19.87%	14.81%	+5.06%
Volatility (1Y) Calculated over the trailing 1-year period	26.17%	19.17%	+7.00%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.93%	22.73%	+3.20%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	28.25%	21.95%	+6.30%

Dividends

EHC vs. COST - Dividend Comparison

EHC's dividend yield for the trailing twelve months is around 0.73%, more than COST's 0.56% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
COST Costco Wholesale Corporation	0.56%	0.59%	0.49%	2.87%	0.76%	0.54%	3.38%	0.86%	1.08%	4.81%	1.09%	4.06%
EHC Encompass Health Corporation	0.73%	0.66%	0.51%	0.90%	20.45%	1.72%	1.35%	1.59%	1.69%	0.51%	0.00%	0.00%

Financials

EHC vs. COST - Profitability Comparison

The chart below illustrates the profitability comparison between Encompass Health Corporation and Costco Wholesale Corporation over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

EHC - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Encompass Health Corporation reported a gross profit of 768.50M and revenue of 1.59B. Therefore, the gross margin over that period was 48.4%.

COST - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Costco Wholesale Corporation reported a gross profit of -17.68B and revenue of 70.53B. Therefore, the gross margin over that period was -25.1%.

EHC - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Encompass Health Corporation reported an operating income of 232.30M and revenue of 1.59B, resulting in an operating margin of 14.6%.

COST - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Costco Wholesale Corporation reported an operating income of 2.82B and revenue of 70.53B, resulting in an operating margin of 4.0%.

EHC - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Encompass Health Corporation reported a net income of 194.50M and revenue of 1.59B, resulting in a net margin of 12.3%.

COST - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Costco Wholesale Corporation reported a net income of 2.19B and revenue of 70.53B, resulting in a net margin of 3.1%.

Frequently Asked Questions

Can I hold both EHC and COST in my portfolio?

EHC and COST have a correlation of 0.17, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, EHC or COST?

COST has higher volatility (7.99%) compared to EHC (6.08%). In terms of maximum drawdown, EHC dropped -39.54% vs COST's -53.39%.

Which has better risk-adjusted returns?

COST currently has the higher Sharpe Ratio (-0.48 vs -0.59), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.