WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Encompass Health Corp generates 15% more annual revenue ($6.07B vs $5.27B). 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 73/100 (B).

EHC

Strong Buy

73

out of 100

Grade: B

Growth: 7.3Profit: 8.0Value: 8.0Quality: 5.8
Piotroski: 5/9Altman Z: 2.09

ENSG

Buy

60

out of 100

Grade: C

Growth: 8.0Profit: 6.0Value: 4.7Quality: 6.3
Piotroski: 6/9Altman Z: 2.34
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EHCUndervalued (+24.7%)

Margin of Safety

+24.7%

Fair Value

$150.58

Current Price

$105.21

$45.37 discount

UndervaluedFair: $150.58Overvalued
ENSGFair Value (-4.1%)

Margin of Safety

-4.1%

Fair Value

$203.60

Current Price

$182.03

$21.57 premium

UndervaluedFair: $203.60Overvalued

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
25.2%9/10

Every $100 of equity generates 25 in profit

EPS GrowthGrowth
29.9%8/10

Earnings expanding 29.9% YoY

ENSG2 strengths · Avg: 8.0/10
Revenue GrowthGrowth
18.4%8/10

18.4% revenue growth

EPS GrowthGrowth
21.9%8/10

Earnings expanding 21.9% YoY

Areas to Watch

EHC0 concerns · Avg: 0/10

No major concerns identified

ENSG3 concerns · Avg: 3.7/10
PEG RatioValuation
1.634/10

Expensive relative to growth rate

P/E RatioValuation
30.0x4/10

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, EPS Growth. Revenue growth of 18.4% 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 0.82 — expect wider price swings.

ENSG is growing revenue faster at 18.4% — sustainability is the question.

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

Bottom Line

EHC scores higher overall (73/100 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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