WallStSmart

Encompass Health Corp (EHC)vsMednax Inc (MD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Encompass Health Corp generates 218% more annual revenue ($6.21B vs $1.95B). 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 71/100 (B).

EHC

Strong Buy

71

out of 100

Grade: B

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

MD

Buy

63

out of 100

Grade: C+

Growth: 4.0Profit: 6.5Value: 9.3Quality: 5.5
Piotroski: 5/9Altman Z: 1.71
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EHCSignificantly Overvalued (-51.9%)

Margin of Safety

-51.9%

Fair Value

$74.69

Current Price

$122.76

$48.07 premium

UndervaluedFair: $74.69Overvalued
MDUndervalued (+65.0%)

Margin of Safety

+65.0%

Fair Value

$61.35

Current Price

$26.35

$35.00 discount

UndervaluedFair: $61.35Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EHC2 strengths · Avg: 9.5/10
PEG RatioValuation
0.4110/10

Growing faster than its price suggests

Return on EquityProfitability
23.9%9/10

Every $100 of equity generates 24 in profit

MD3 strengths · Avg: 8.7/10
PEG RatioValuation
0.2410/10

Growing faster than its price suggests

P/E RatioValuation
12.9x8/10

Attractively priced relative to earnings

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

Areas to Watch

EHC1 concerns · Avg: 3.0/10
Debt/EquityHealth
1.093/10

Elevated debt levels

MD2 concerns · Avg: 4.0/10
Revenue GrowthGrowth
4.0%4/10

4.0% revenue growth

Altman Z-ScoreHealth
1.714/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : EHC

The strongest argument for EHC centers on PEG Ratio, Return on Equity. 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, Price/Book. 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.

Key Dynamics to Monitor

MD carries more volatility with a beta of 0.65 — expect wider price swings.

EHC is growing revenue faster at 9.6% — sustainability is the question.

MD generates stronger free cash flow (124M), providing more financial flexibility.

Monitor MEDICAL CARE FACILITIES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

EHC scores higher overall (71/100 vs 63/100). MD offers better value entry with a 65.0% 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.

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.

Visit Website →

Want to dig deeper into these stocks?