Encompass Health Corp (EHC)vsHCA Holdings Inc (HCA)
EHC
Encompass Health Corp
$105.21
-1.34%
HEALTHCARE · Cap: $10.69B
HCA
HCA Holdings Inc
$427.18
-1.36%
HEALTHCARE · Cap: $94.77B
Smart Verdict
WallStSmart Research — data-driven comparison
HCA Holdings Inc generates 1159% more annual revenue ($76.39B vs $6.07B). EHC leads profitability with a 10.0% profit margin vs 8.9%. 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
HCA
Buy63
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
-4.9%
Fair Value
$506.61
Current Price
$427.18
$79.43 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
Every $100 of equity generates 136 in profit
Conservative balance sheet, low leverage
Large-cap with strong market position
Attractively priced relative to earnings
Areas to Watch
No major concerns identified
4.3% revenue growth
Distress zone — elevated risk
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 : HCA
The strongest argument for HCA centers on Return on Equity, Debt/Equity, Market Cap. PEG of 1.31 suggests the stock is reasonably priced for its growth.
Bear Case : EHC
No major red flags identified for EHC, but monitor valuation.
Bear Case : HCA
The primary concerns for HCA are Revenue Growth, Altman Z-Score.
Key Dynamics to Monitor
HCA carries more volatility with a beta of 1.19 — expect wider price swings.
EHC is growing revenue faster at 9.0% — sustainability is the question.
HCA generates stronger free cash flow (895M), providing more financial flexibility.
Monitor MEDICAL CARE FACILITIES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
EHC scores higher overall (73/100 vs 63/100). 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.
HCA Holdings Inc
HEALTHCARE · MEDICAL CARE FACILITIES · USA
HCA Healthcare is an American for-profit operator of health care facilities that was founded in 1968. It is based in Nashville, Tennessee, and, as of May 2020, owns and operates 186 hospitals and approximately 2,000 sites of care, including surgery centers, freestanding emergency rooms, urgent care centers and physician clinics in 21 states and the United Kingdom.
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