Encompass Health Corp (EHC)vsEli Lilly and Company (LLY)
EHC
Encompass Health Corp
$102.61
+0.90%
HEALTHCARE · Cap: $10.20B
LLY
Eli Lilly and Company
$934.60
+9.80%
HEALTHCARE · Cap: $760.43B
Smart Verdict
WallStSmart Research — data-driven comparison
Eli Lilly and Company generates 998% more annual revenue ($65.18B vs $5.94B). LLY leads profitability with a 31.7% profit margin vs 9.5%. EHC appears more attractively valued with a PEG of 0.41. LLY earns a higher WallStSmart Score of 78/100 (B+).
EHC
Strong Buy70
out of 100
Grade: B
LLY
Strong Buy78
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+23.0%
Fair Value
$147.31
Current Price
$102.61
$44.70 discount
Intrinsic value data unavailable for LLY.
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 21.2% YoY
Mega-cap, among the largest globally
Every $100 of equity generates 101 in profit
Keeps 32 of every $100 in revenue as profit
Strong operational efficiency at 44.9%
Revenue surging 42.6% year-over-year
Earnings expanding 51.4% YoY
Areas to Watch
No major concerns identified
Premium valuation, high expectations priced in
Elevated debt levels
Trading at 31.5x book value
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 : LLY
The strongest argument for LLY centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 31.7% and operating margin at 44.9%. Revenue growth of 42.6% demonstrates continued momentum.
Bear Case : EHC
No major red flags identified for EHC, but monitor valuation.
Bear Case : LLY
The primary concerns for LLY are P/E Ratio, Debt/Equity, Price/Book. Debt-to-equity of 1.60 is elevated, increasing financial risk.
Key Dynamics to Monitor
EHC profiles as a value stock while LLY is a growth play — different risk/reward profiles.
EHC carries more volatility with a beta of 0.60 — expect wider price swings.
LLY is growing revenue faster at 42.6% — sustainability is the question.
LLY generates stronger free cash flow (678M), providing more financial flexibility.
Bottom Line
LLY scores higher overall (78/100 vs 70/100), backed by strong 31.7% margins and 42.6% revenue growth. EHC offers better value entry with a 23.0% margin of safety. Both earn "Strong Buy" and "Strong 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.
Eli Lilly and Company
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Eli Lilly and Company is an American pharmaceutical company headquartered in Indianapolis, Indiana, with offices in 18 countries. Its products are sold in approximately 125 countries.
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