Encompass Health Corp (EHC)vsFresenius Medical Care Corporation (FMS)
EHC
Encompass Health Corp
$95.86
-2.07%
HEALTHCARE · Cap: $9.65B
FMS
Fresenius Medical Care Corporation
$21.64
-2.13%
HEALTHCARE · Cap: $12.92B
Smart Verdict
WallStSmart Research — data-driven comparison
Fresenius Medical Care Corporation generates 231% more annual revenue ($19.63B vs $5.94B). EHC leads profitability with a 9.5% profit margin vs 5.0%. EHC appears more attractively valued with a PEG of 0.41. EHC earns a higher WallStSmart Score of 69/100 (B-).
EHC
Strong Buy69
out of 100
Grade: B-
FMS
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+49.8%
Fair Value
$226.00
Current Price
$95.86
$130.14 discount
Margin of Safety
+73.4%
Fair Value
$90.32
Current Price
$21.64
$68.68 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Every $100 of equity generates 25 in profit
Attractively priced relative to earnings
Earnings expanding 21.2% YoY
Attractively priced relative to earnings
Reasonable price relative to book value
Earnings expanding 420.0% YoY
Growing faster than its price suggests
Areas to Watch
No major concerns identified
Grey zone — moderate risk
ROE of 7.9% — below average capital efficiency
5.0% margin — thin
Revenue declined 30.0%
Comparative Analysis Report
WallStSmart ResearchBull 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 : FMS
The strongest argument for FMS centers on P/E Ratio, Price/Book, EPS Growth. PEG of 0.77 suggests the stock is reasonably priced for its growth.
Bear Case : EHC
No major red flags identified for EHC, but monitor valuation.
Bear Case : FMS
The primary concerns for FMS are Altman Z-Score, Return on Equity, Profit Margin. Thin 5.0% margins leave little buffer for downturns.
Key Dynamics to Monitor
FMS carries more volatility with a beta of 0.94 — expect wider price swings.
EHC is growing revenue faster at 9.9% — sustainability is the question.
FMS generates stronger free cash flow (564M), providing more financial flexibility.
Monitor MEDICAL CARE FACILITIES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
EHC scores higher overall (69/100 vs 62/100). FMS offers better value entry with a 73.4% margin of safety. 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.
Fresenius Medical Care Corporation
HEALTHCARE · MEDICAL CARE FACILITIES · USA
Fresenius Medical Care AG & Co. KGaA provides dialysis care and related dialysis care services in Germany, North America and internationally. The company is headquartered in Bad Homburg, Germany.
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