Encompass Health Corp (EHC)vsThe Ensign Group Inc (ENSG)
EHC
Encompass Health Corp
$105.21
-1.34%
HEALTHCARE · Cap: $10.69B
ENSG
The Ensign Group Inc
$182.03
-0.92%
HEALTHCARE · Cap: $10.73B
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 Buy73
out of 100
Grade: B
ENSG
Buy60
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+24.7%
Fair Value
$150.58
Current Price
$105.21
$45.37 discount
Margin of Safety
-4.1%
Fair Value
$203.60
Current Price
$182.03
$21.57 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Every $100 of equity generates 25 in profit
Earnings expanding 29.9% YoY
18.4% revenue growth
Earnings expanding 21.9% YoY
Areas to Watch
No major concerns identified
Expensive relative to growth rate
Moderate valuation
6.9% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull 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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