WallStSmart

Encompass Health Corp (EHC)vsNextera Energy Inc (NEE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Nextera Energy Inc generates 359% more annual revenue ($27.87B vs $6.07B). NEE leads profitability with a 29.4% profit margin vs 10.0%. EHC appears more attractively valued with a PEG of 0.41. EHC earns a higher WallStSmart Score of 75/100 (B+).

EHC

Strong Buy

75

out of 100

Grade: B+

Growth: 8.0Profit: 8.0Value: 8.0Quality: 5.8
Piotroski: 5/9Altman Z: 2.09

NEE

Strong Buy

67

out of 100

Grade: B-

Growth: 7.3Profit: 7.5Value: 5.0Quality: 3.0
Piotroski: 3/9Altman Z: 0.72
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EHCUndervalued (+24.9%)

Margin of Safety

+24.9%

Fair Value

$150.95

Current Price

$106.10

$44.85 discount

UndervaluedFair: $150.95Overvalued

Intrinsic value data unavailable for NEE.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EHC3 strengths · Avg: 9.0/10
PEG RatioValuation
0.4110/10

Growing faster than its price suggests

Return on EquityProfitability
25.2%9/10

Every $100 of equity generates 25 in profit

EPS GrowthGrowth
30.3%8/10

Earnings expanding 30.3% YoY

NEE4 strengths · Avg: 9.5/10
Operating MarginProfitability
30.2%10/10

Strong operational efficiency at 30.2%

EPS GrowthGrowth
160.0%10/10

Earnings expanding 160.0% YoY

Market CapQuality
$194.60B9/10

Large-cap with strong market position

Profit MarginProfitability
29.4%9/10

Keeps 29 of every $100 in revenue as profit

Areas to Watch

EHC0 concerns · Avg: 0/10

No major concerns identified

NEE4 concerns · Avg: 3.0/10
PEG RatioValuation
2.124/10

Expensive relative to growth rate

Debt/EquityHealth
1.753/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Free Cash FlowQuality
$-580.00M2/10

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, EPS Growth. PEG of 0.41 suggests the stock is reasonably priced for its growth.

Bull Case : NEE

The strongest argument for NEE centers on Operating Margin, EPS Growth, Market Cap. Profitability is solid with margins at 29.4% and operating margin at 30.2%.

Bear Case : EHC

No major red flags identified for EHC, but monitor valuation.

Bear Case : NEE

The primary concerns for NEE are PEG Ratio, Debt/Equity, Piotroski F-Score. Debt-to-equity of 1.75 is elevated, increasing financial risk.

Key Dynamics to Monitor

EHC profiles as a value stock while NEE is a mature play — different risk/reward profiles.

NEE carries more volatility with a beta of 0.72 — 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.

Bottom Line

EHC scores higher overall (75/100 vs 67/100). 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.

Nextera Energy Inc

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

NextEra Energy, Inc. is an American energy company with about 46 gigawatts of generating capacity, revenues of over $17 billion in 2017, and about 14,000 employees throughout the US and Canada. Its subsidiaries include Florida Power & Light (FPL), NextEra Energy Resources, NextEra Energy Partners, Gulf Power Company, and NextEra Energy Services.

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