Encompass Health Corp (EHC)vsMednax Inc (MD)
EHC
Encompass Health Corp
$106.10
-0.98%
HEALTHCARE · Cap: $10.63B
MD
Mednax Inc
$23.51
+2.53%
HEALTHCARE · Cap: $1.88B
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 Buy75
out of 100
Grade: B+
MD
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+24.9%
Fair Value
$150.95
Current Price
$106.10
$44.85 discount
Margin of Safety
+72.2%
Fair Value
$77.27
Current Price
$23.51
$53.76 discount
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 30.3% YoY
Growing faster than its price suggests
Attractively priced relative to earnings
Every $100 of equity generates 21 in profit
Reasonable price relative to book value
Earnings expanding 48.3% YoY
Areas to Watch
No major concerns identified
3.9% revenue growth
Distress zone — elevated risk
Smaller company, higher risk/reward
Negative free cash flow — burning cash
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 : MD
The strongest argument for MD centers on PEG Ratio, P/E Ratio, Return on Equity. PEG of 0.24 suggests the stock is reasonably priced for its growth.
Bear Case : EHC
No major red flags identified for EHC, but monitor valuation.
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 0.71 — 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 68/100). MD offers better value entry with a 72.2% 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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