Community Health Systems Inc (CYH)vsEncompass Health Corp (EHC)
CYH
Community Health Systems Inc
$2.74
-1.79%
HEALTHCARE · Cap: $422.75M
EHC
Encompass Health Corp
$104.01
+4.18%
HEALTHCARE · Cap: $10.07B
Smart Verdict
WallStSmart Research — data-driven comparison
Community Health Systems Inc generates 103% more annual revenue ($12.29B vs $6.07B). EHC leads profitability with a 10.0% profit margin vs 3.8%. EHC appears more attractively valued with a PEG of 0.41. EHC earns a higher WallStSmart Score of 75/100 (B+).
CYH
Hold45
out of 100
Grade: D+
EHC
Strong Buy75
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+87.2%
Fair Value
$26.37
Current Price
$2.74
$23.63 discount
Margin of Safety
-57.0%
Fair Value
$72.26
Current Price
$104.01
$31.75 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Conservative balance sheet, low leverage
Growing faster than its price suggests
Every $100 of equity generates 24 in profit
Attractively priced relative to earnings
Earnings expanding 30.3% YoY
Areas to Watch
Expensive relative to growth rate
Smaller company, higher risk/reward
ROE of 0.0% — below average capital efficiency
3.8% margin — thin
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : CYH
The strongest argument for CYH centers on P/E Ratio, Debt/Equity.
Bull Case : EHC
The strongest argument for EHC centers on PEG Ratio, Return on Equity, P/E Ratio. PEG of 0.41 suggests the stock is reasonably priced for its growth.
Bear Case : CYH
The primary concerns for CYH are PEG Ratio, Market Cap, Return on Equity. Thin 3.8% margins leave little buffer for downturns.
Bear Case : EHC
The primary concerns for EHC are Debt/Equity.
Key Dynamics to Monitor
CYH carries more volatility with a beta of 1.86 — expect wider price swings.
EHC is growing revenue faster at 9.0% — sustainability is the question.
EHC generates stronger free cash flow (151M), providing more financial flexibility.
Monitor MEDICAL CARE FACILITIES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
EHC scores higher overall (75/100 vs 45/100). CYH offers better value entry with a 87.2% margin of safety. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Community Health Systems Inc
HEALTHCARE · MEDICAL CARE FACILITIES · USA
Community Health Systems, Inc. owns, leases and operates general acute care hospitals in the United States. The company is headquartered in Franklin, Tennessee.
Encompass Health Corp
HEALTHCARE · MEDICAL CARE FACILITIES · USA
Encompass Health Corporation offers in-home and post-acute health care services in the United States. The company is headquartered in Birmingham, Alabama.
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