Encompass Health Corp (EHC)vsInnovAge Holding Corp (INNV)
EHC
Encompass Health Corp
$105.01
-0.14%
HEALTHCARE · Cap: $10.69B
INNV
InnovAge Holding Corp
$7.96
-2.57%
HEALTHCARE · Cap: $1.08B
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 Buy73
out of 100
Grade: B
INNV
Avoid31
out of 100
Grade: F
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
+45.5%
Fair Value
$15.02
Current Price
$7.96
$7.06 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
No standout strengths identified
Areas to Watch
No major concerns identified
Distress zone — elevated risk
Smaller company, higher risk/reward
ROE of 1.2% — below average capital efficiency
0.7% 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 : 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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