WallStSmart

Encompass Health Corp (EHC)vsThe Ensign Group Inc (ENSG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Encompass Health Corp generates 17% more annual revenue ($5.94B vs $5.06B). EHC leads profitability with a 9.5% profit margin vs 6.8%. EHC appears more attractively valued with a PEG of 0.41. EHC earns a higher WallStSmart Score of 69/100 (B-).

EHC

Strong Buy

69

out of 100

Grade: B-

Growth: 7.3Profit: 7.5Value: 10.0Quality: 5.8
Piotroski: 4/9Altman Z: 2.09

ENSG

Buy

57

out of 100

Grade: C

Growth: 8.0Profit: 6.0Value: 8.0Quality: 5.8
Piotroski: 5/9Altman Z: 2.34
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EHCUndervalued (+49.8%)

Margin of Safety

+49.8%

Fair Value

$226.00

Current Price

$95.86

$130.14 discount

UndervaluedFair: $226.00Overvalued
ENSGFair Value (-0.1%)

Margin of Safety

-0.1%

Fair Value

$211.64

Current Price

$200.08

$11.56 premium

UndervaluedFair: $211.64Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EHC4 strengths · Avg: 8.8/10
PEG RatioValuation
0.4110/10

Growing faster than its price suggests

Return on EquityProfitability
24.8%9/10

Every $100 of equity generates 25 in profit

P/E RatioValuation
17.3x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
21.2%8/10

Earnings expanding 21.2% YoY

ENSG1 strengths · Avg: 8.0/10
Revenue GrowthGrowth
20.2%8/10

Revenue surging 20.2% year-over-year

Areas to Watch

EHC0 concerns · Avg: 0/10

No major concerns identified

ENSG3 concerns · Avg: 3.7/10
PEG RatioValuation
1.804/10

Expensive relative to growth rate

P/E RatioValuation
34.3x4/10

Premium valuation, high expectations priced in

Profit MarginProfitability
6.8%3/10

6.8% margin — thin

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : ENSG

The strongest argument for ENSG centers on Revenue Growth. Revenue growth of 20.2% demonstrates continued momentum.

Bear Case : EHC

No major red flags identified for EHC, but monitor valuation.

Bear Case : ENSG

The primary concerns for ENSG are PEG Ratio, P/E Ratio, Profit Margin.

Key Dynamics to Monitor

EHC profiles as a value stock while ENSG is a growth play — different risk/reward profiles.

ENSG carries more volatility with a beta of 0.80 — expect wider price swings.

ENSG is growing revenue faster at 20.2% — sustainability is the question.

ENSG generates stronger free cash flow (133M), providing more financial flexibility.

Bottom Line

EHC scores higher overall (69/100 vs 57/100). Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

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.

The Ensign Group Inc

HEALTHCARE · MEDICAL CARE FACILITIES · USA

The Ensign Group, Inc. provides health care services in the post-acute care continuum and other ancillary businesses. The company is headquartered in San Juan Capistrano, California.

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