Encompass Health Corp (EHC)vsEli Lilly and Company (LLY)
EHC
Encompass Health Corp
$113.80
-1.92%
HEALTHCARE · Cap: $11.13B
LLY
Eli Lilly and Company
$1,155.27
-4.52%
HEALTHCARE · Cap: $1.02T
Smart Verdict
WallStSmart Research — data-driven comparison
Eli Lilly and Company generates 1091% more annual revenue ($72.25B vs $6.07B). LLY leads profitability with a 35.0% profit margin vs 10.0%. EHC appears more attractively valued with a PEG of 0.41. LLY earns a higher WallStSmart Score of 76/100 (B+).
EHC
Strong Buy75
out of 100
Grade: B+
LLY
Strong Buy76
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-56.8%
Fair Value
$72.34
Current Price
$113.80
$41.46 premium
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 24 in profit
Earnings expanding 30.3% YoY
Mega-cap, among the largest globally
Every $100 of equity generates 81 in profit
Keeps 35 of every $100 in revenue as profit
Strong operational efficiency at 49.4%
Revenue surging 55.5% year-over-year
Earnings expanding 169.9% YoY
Areas to Watch
Elevated debt levels
Expensive relative to growth rate
Elevated debt levels
Premium valuation, high expectations priced in
Trading at 33.1x 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 35.0% and operating margin at 49.4%. Revenue growth of 55.5% demonstrates continued momentum.
Bear Case : EHC
The primary concerns for EHC are Debt/Equity.
Bear Case : LLY
The primary concerns for LLY are PEG Ratio, Debt/Equity, P/E Ratio. A P/E of 41.8x leaves little room for execution misses.
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 55.5% — sustainability is the question.
LLY generates stronger free cash flow (3.0B), providing more financial flexibility.
Bottom Line
LLY scores higher overall (76/100 vs 75/100), backed by strong 35.0% margins and 55.5% revenue growth. 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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