WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Encompass Health Corp generates 11% more annual revenue ($6.07B vs $5.49B). EHC leads profitability with a 10.0% profit margin vs 6.9%. EHC appears more attractively valued with a PEG of 0.41. EHC earns a higher WallStSmart Score of 75/100 (B+).

EHC

Strong Buy

75

out of 100

Grade: B+

Growth: 8.0Profit: 7.5Value: 6.0Quality: 6.0
Piotroski: 6/9Altman Z: 2.12

ENSG

Buy

60

out of 100

Grade: C+

Growth: 8.0Profit: 6.0Value: 4.0Quality: 6.0
Piotroski: 4/9Altman Z: 2.15
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EHCSignificantly Overvalued (-56.8%)

Margin of Safety

-56.8%

Fair Value

$72.34

Current Price

$110.50

$38.16 premium

UndervaluedFair: $72.34Overvalued
ENSGSignificantly Overvalued (-39.8%)

Margin of Safety

-39.8%

Fair Value

$151.60

Current Price

$176.13

$24.53 premium

UndervaluedFair: $151.60Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EHC3 strengths · Avg: 9.0/10
PEG RatioValuation
0.4110/10

Growing faster than its price suggests

Return on EquityProfitability
24.2%9/10

Every $100 of equity generates 24 in profit

EPS GrowthGrowth
30.3%8/10

Earnings expanding 30.3% YoY

ENSG1 strengths · Avg: 8.0/10
Revenue GrowthGrowth
17.3%8/10

17.3% revenue growth

Areas to Watch

EHC1 concerns · Avg: 3.0/10
Debt/EquityHealth
1.113/10

Elevated debt levels

ENSG3 concerns · Avg: 3.7/10
PEG RatioValuation
1.544/10

Expensive relative to growth rate

P/E RatioValuation
27.9x4/10

Moderate valuation

Profit MarginProfitability
6.9%3/10

6.9% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : EHC

The strongest argument for EHC centers on PEG Ratio, Return on Equity, EPS Growth. 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 17.3% demonstrates continued momentum.

Bear Case : EHC

The primary concerns for EHC are Debt/Equity.

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 0.69 — expect wider price swings.

ENSG is growing revenue faster at 17.3% — sustainability is the question.

EHC generates stronger free cash flow (151M), providing more financial flexibility.

Bottom Line

EHC scores higher overall (75/100 vs 60/100). 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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