WallStSmart

Encompass Health Corp (EHC)vsFresenius Medical Care Corporation (FMS)

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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 Buy

69

out of 100

Grade: B-

Growth: 7.3Profit: 7.5Value: 10.0Quality: 5.8
Piotroski: 4/9Altman Z: 2.09

FMS

Buy

62

out of 100

Grade: C+

Growth: 7.3Profit: 5.0Value: 10.0Quality: 7.0
Piotroski: 6/9Altman Z: 1.82
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EHCUndervalued (+49.8%)

Margin of Safety

+49.8%

Fair Value

$226.00

Current Price

$95.86

$130.14 discount

UndervaluedFair: $226.00Overvalued
FMSUndervalued (+73.4%)

Margin of Safety

+73.4%

Fair Value

$90.32

Current Price

$21.64

$68.68 discount

UndervaluedFair: $90.32Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EHC4 strengths · Avg: 8.8/10
PEG RatioValuation
0.4110/10

Growing faster than its price suggests

Return on EquityProfitability
24.8%9/10

Every $100 of equity generates 25 in profit

P/E RatioValuation
17.3x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
21.2%8/10

Earnings expanding 21.2% YoY

FMS4 strengths · Avg: 9.5/10
P/E RatioValuation
11.6x10/10

Attractively priced relative to earnings

Price/BookValuation
0.4x10/10

Reasonable price relative to book value

EPS GrowthGrowth
420.0%10/10

Earnings expanding 420.0% YoY

PEG RatioValuation
0.778/10

Growing faster than its price suggests

Areas to Watch

EHC0 concerns · Avg: 0/10

No major concerns identified

FMS4 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.824/10

Grey zone — moderate risk

Return on EquityProfitability
7.9%3/10

ROE of 7.9% — below average capital efficiency

Profit MarginProfitability
5.0%3/10

5.0% margin — thin

Revenue GrowthGrowth
-30.0%2/10

Revenue declined 30.0%

Comparative Analysis Report

WallStSmart Research

Bull 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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