Encompass Health Corp (EHC)vsHealthcare Services Group Inc (HCSG)
EHC
Encompass Health Corp
$105.01
-0.14%
HEALTHCARE · Cap: $10.69B
HCSG
Healthcare Services Group Inc
$22.07
+1.56%
HEALTHCARE · Cap: $1.46B
Smart Verdict
WallStSmart Research — data-driven comparison
Encompass Health Corp generates 228% more annual revenue ($6.07B vs $1.85B). EHC leads profitability with a 10.0% profit margin vs 3.7%. 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
HCSG
Buy60
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+24.7%
Fair Value
$150.60
Current Price
$105.01
$45.59 discount
Margin of Safety
+80.8%
Fair Value
$115.76
Current Price
$22.07
$93.69 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
Earnings expanding 29.9% YoY
Earnings expanding 60.9% YoY
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Reasonable price relative to book value
Areas to Watch
No major concerns identified
3.4% revenue growth
Smaller company, higher risk/reward
3.7% 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 : HCSG
The strongest argument for HCSG centers on EPS Growth, Debt/Equity, Altman Z-Score. PEG of 1.36 suggests the stock is reasonably priced for its growth.
Bear Case : EHC
No major red flags identified for EHC, but monitor valuation.
Bear Case : HCSG
The primary concerns for HCSG are Revenue Growth, Market Cap, Profit Margin. Thin 3.7% margins leave little buffer for downturns.
Key Dynamics to Monitor
HCSG carries more volatility with a beta of 0.81 — expect wider price swings.
EHC is growing revenue faster at 9.0% — sustainability is the question.
EHC generates stronger free cash flow (151M), providing more financial flexibility.
Monitor MEDICAL CARE FACILITIES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
EHC scores higher overall (73/100 vs 60/100). HCSG offers better value entry with a 80.8% 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.
Healthcare Services Group Inc
HEALTHCARE · MEDICAL CARE FACILITIES · USA
Healthcare Services Group, Inc. provides management, administrative, and operational services to the cleaning, laundry, bedding, facility maintenance, and dietary services departments of nursing homes, retirement complexes, rehabilitation centers, and hospitals in the United States. . The company is headquartered in Bensalem, Pennsylvania.
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