WallStSmart

Encompass Health Corp (EHC)vsInnovAge Holding Corp (INNV)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Encompass Health Corp generates 563% more annual revenue ($6.07B vs $915.37M). EHC leads profitability with a 10.0% profit margin vs 0.7%. EHC trades at a lower P/E of 18.4x. EHC earns a higher WallStSmart Score of 73/100 (B).

EHC

Strong Buy

73

out of 100

Grade: B

Growth: 7.3Profit: 8.0Value: 8.0Quality: 5.8
Piotroski: 5/9Altman Z: 2.09

INNV

Avoid

31

out of 100

Grade: F

Growth: 4.7Profit: 4.5Value: 5.7Quality: 6.0
Piotroski: 5/9Altman Z: 1.74
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EHCUndervalued (+24.7%)

Margin of Safety

+24.7%

Fair Value

$150.60

Current Price

$105.01

$45.59 discount

UndervaluedFair: $150.60Overvalued
INNVUndervalued (+45.5%)

Margin of Safety

+45.5%

Fair Value

$15.02

Current Price

$7.96

$7.06 discount

UndervaluedFair: $15.02Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EHC3 strengths · Avg: 9.0/10
PEG RatioValuation
0.4110/10

Growing faster than its price suggests

Return on EquityProfitability
25.2%9/10

Every $100 of equity generates 25 in profit

EPS GrowthGrowth
29.9%8/10

Earnings expanding 29.9% YoY

INNV0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

EHC0 concerns · Avg: 0/10

No major concerns identified

INNV4 concerns · Avg: 3.3/10
Altman Z-ScoreHealth
1.744/10

Distress zone — elevated risk

Market CapQuality
$1.08B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
1.2%3/10

ROE of 1.2% — below average capital efficiency

Profit MarginProfitability
0.7%3/10

0.7% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull 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 : INNV

Revenue growth of 14.7% demonstrates continued momentum.

Bear Case : EHC

No major red flags identified for EHC, but monitor valuation.

Bear Case : INNV

The primary concerns for INNV are Altman Z-Score, Market Cap, Return on Equity. A P/E of 159.2x leaves little room for execution misses. Thin 0.7% margins leave little buffer for downturns.

Key Dynamics to Monitor

EHC carries more volatility with a beta of 0.60 — expect wider price swings.

INNV is growing revenue faster at 14.7% — 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 31/100). INNV offers better value entry with a 45.5% margin of safety. Both earn "Strong Buy" and "Avoid" 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.

InnovAge Holding Corp

HEALTHCARE · MEDICAL CARE FACILITIES · USA

InnovAge Holding Corp. The company is headquartered in Denver, Colorado.

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