WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Encompass Health Corp generates 13% more annual revenue ($6.21B 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 71/100 (B).

EHC

Strong Buy

71

out of 100

Grade: B

Growth: 6.7Profit: 7.5Value: 6.0Quality: 6.0
Piotroski: 6/9Altman Z: 2.12

ENSG

Buy

61

out of 100

Grade: C+

Growth: 8.0Profit: 6.0Value: 4.7Quality: 6.0
Piotroski: 4/9Altman Z: 2.15
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EHCSignificantly Overvalued (-51.9%)

Margin of Safety

-51.9%

Fair Value

$74.69

Current Price

$121.75

$47.06 premium

UndervaluedFair: $74.69Overvalued
ENSGSignificantly Overvalued (-39.8%)

Margin of Safety

-39.8%

Fair Value

$151.57

Current Price

$173.91

$22.34 premium

UndervaluedFair: $151.57Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EHC2 strengths · Avg: 9.5/10
PEG RatioValuation
0.4110/10

Growing faster than its price suggests

Return on EquityProfitability
23.9%9/10

Every $100 of equity generates 24 in profit

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
1.093/10

Elevated debt levels

ENSG2 concerns · Avg: 3.5/10
P/E RatioValuation
26.7x4/10

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. 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. PEG of 1.35 suggests the stock is reasonably priced for its growth.

Bear Case : EHC

The primary concerns for EHC are Debt/Equity.

Bear Case : ENSG

The primary concerns for ENSG are 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.

ENSG generates stronger free cash flow (119M), providing more financial flexibility.

Bottom Line

EHC scores higher overall (71/100 vs 61/100). 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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