DaVita vs. Encompass Health: Which Healthcare Stock Is a Better Buy in 2026?
One dominates kidney care with global reach, while the other leads in rehab with faster growth and higher margins. Which business model stands out for 2026?
DaVita vs. Encompass Health: Which Healthcare Stock Is a Better Buy in 2026?
Overview
Should you invest in a kidney care giant or a growing rehabilitation leader? Choosing between DaVita (NYSE:DVA) and Encompass Health (NYSE:EHC) requires weighing steady patient volumes against higher growth rates.
DaVita focuses exclusively on kidney health, primarily providing life-saving dialysis services. Encompass Health operates a national network of inpatient rehabilitation hospitals for patients recovering from serious injuries or illnesses. Both companies depend heavily on government reimbursement, making them stable but sensitive to policy shifts.
Details
DaVita provides essential dialysis services to patients with chronic kidney failure and end-stage renal disease. The company operates a massive network of 3,242 outpatient centers, with a heavy concentration in the United States. Revenue is highly concentrated in government-based programs, which account for roughly 68% of total U.S. dialysis patient service revenue. Customer concentration like this adds a layer of risk to the business, as the company depends on Medicare and Medicare Advantage for a majority of its income.
Source
Originally published at www.fool.com.
