Encompass Health Corp (EHC)vsLifestance Health Group Inc (LFST)
EHC
Encompass Health Corp
$104.01
+4.18%
HEALTHCARE · Cap: $10.07B
LFST
Lifestance Health Group Inc
$7.41
-3.01%
HEALTHCARE · Cap: $2.94B
Smart Verdict
WallStSmart Research — data-driven comparison
Encompass Health Corp generates 306% more annual revenue ($6.07B vs $1.49B). EHC leads profitability with a 10.0% profit margin vs 1.6%. EHC trades at a lower P/E of 17.4x. EHC earns a higher WallStSmart Score of 75/100 (B+).
EHC
Strong Buy75
out of 100
Grade: B+
LFST
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-57.0%
Fair Value
$72.27
Current Price
$104.01
$31.74 premium
Margin of Safety
+33.6%
Fair Value
$10.44
Current Price
$7.41
$3.03 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Every $100 of equity generates 24 in profit
Attractively priced relative to earnings
Earnings expanding 30.3% YoY
Earnings expanding 1927.0% YoY
Conservative balance sheet, low leverage
Reasonable price relative to book value
Revenue surging 21.2% year-over-year
Areas to Watch
Elevated debt levels
Distress zone — elevated risk
ROE of 1.6% — below average capital efficiency
1.6% margin — thin
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull 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 : LFST
The strongest argument for LFST centers on EPS Growth, Debt/Equity, Price/Book. Revenue growth of 21.2% demonstrates continued momentum.
Bear Case : EHC
The primary concerns for EHC are Debt/Equity.
Bear Case : LFST
The primary concerns for LFST are Altman Z-Score, Return on Equity, Profit Margin. A P/E of 128.5x leaves little room for execution misses. Thin 1.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
EHC profiles as a value stock while LFST is a growth play — different risk/reward profiles.
LFST carries more volatility with a beta of 1.20 — expect wider price swings.
LFST is growing revenue faster at 21.2% — sustainability is the question.
EHC generates stronger free cash flow (151M), providing more financial flexibility.
Bottom Line
EHC scores higher overall (75/100 vs 56/100). LFST offers better value entry with a 33.6% 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.
Lifestance Health Group Inc
HEALTHCARE · MEDICAL CARE FACILITIES · USA
LifeStance Health Group, Inc., provides outpatient mental health services to children, adolescents, adults and geriatrics. The company is headquartered in Scottsdale, Arizona.
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