WallStSmart

Encompass Health Corp (EHC)vsMednax Inc (MD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Encompass Health Corp generates 214% more annual revenue ($6.07B vs $1.93B). EHC leads profitability with a 10.0% profit margin vs 9.0%. MD appears more attractively valued with a PEG of 0.24. EHC earns a higher WallStSmart Score of 75/100 (B+).

EHC

Strong Buy

75

out of 100

Grade: B+

Growth: 8.0Profit: 7.5Value: 6.7Quality: 6.0
Piotroski: 6/9Altman Z: 2.12

MD

Strong Buy

66

out of 100

Grade: B-

Growth: 5.3Profit: 6.5Value: 10.0Quality: 5.5
Piotroski: 5/9Altman Z: 1.71
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EHCSignificantly Overvalued (-57.0%)

Margin of Safety

-57.0%

Fair Value

$72.26

Current Price

$98.68

$26.42 premium

UndervaluedFair: $72.26Overvalued
MDUndervalued (+65.0%)

Margin of Safety

+65.0%

Fair Value

$61.27

Current Price

$23.87

$37.40 discount

UndervaluedFair: $61.27Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EHC4 strengths · Avg: 8.8/10
PEG RatioValuation
0.4110/10

Growing faster than its price suggests

Return on EquityProfitability
24.2%9/10

Every $100 of equity generates 24 in profit

P/E RatioValuation
17.4x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
30.3%8/10

Earnings expanding 30.3% YoY

MD4 strengths · Avg: 9.5/10
PEG RatioValuation
0.2410/10

Growing faster than its price suggests

P/E RatioValuation
11.8x10/10

Attractively priced relative to earnings

EPS GrowthGrowth
50.0%10/10

Earnings expanding 50.0% YoY

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Areas to Watch

EHC1 concerns · Avg: 3.0/10
Debt/EquityHealth
1.113/10

Elevated debt levels

MD4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
3.9%4/10

3.9% revenue growth

Altman Z-ScoreHealth
1.714/10

Distress zone — elevated risk

Market CapQuality
$2.00B3/10

Smaller company, higher risk/reward

Free Cash FlowQuality
$-135.75M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull 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 : MD

The strongest argument for MD centers on PEG Ratio, P/E Ratio, EPS Growth. PEG of 0.24 suggests the stock is reasonably priced for its growth.

Bear Case : EHC

The primary concerns for EHC are Debt/Equity.

Bear Case : MD

The primary concerns for MD are Revenue Growth, Altman Z-Score, Market Cap.

Key Dynamics to Monitor

MD carries more volatility with a beta of 0.70 — expect wider price swings.

EHC is growing revenue faster at 9.0% — 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 (75/100 vs 66/100). MD offers better value entry with a 65.0% 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.

Mednax Inc

HEALTHCARE · MEDICAL CARE FACILITIES · USA

MEDNAX, Inc., provides neonatal, maternal-fetal, pediatric cardiology, and other pediatric subspecialties in the United States and Puerto Rico. The company is headquartered in Sunrise, Florida.

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