WallStSmart

Encompass Health Corp (EHC)vsNational Grid PLC ADR (NGG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

National Grid PLC ADR generates 195% more annual revenue ($17.48B vs $5.94B). NGG leads profitability with a 16.4% profit margin vs 9.5%. EHC appears more attractively valued with a PEG of 0.41. EHC earns a higher WallStSmart Score of 70/100 (B).

EHC

Strong Buy

70

out of 100

Grade: B

Growth: 7.3Profit: 7.5Value: 8.0Quality: 5.8
Piotroski: 4/9Altman Z: 2.09

NGG

Buy

50

out of 100

Grade: C-

Growth: 2.0Profit: 6.5Value: 5.7Quality: 4.0
Piotroski: 4/9Altman Z: 1.24
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EHCUndervalued (+23.0%)

Margin of Safety

+23.0%

Fair Value

$147.31

Current Price

$102.61

$44.70 discount

UndervaluedFair: $147.31Overvalued

Intrinsic value data unavailable for NGG.

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
24.8%9/10

Every $100 of equity generates 25 in profit

EPS GrowthGrowth
21.2%8/10

Earnings expanding 21.2% YoY

NGG2 strengths · Avg: 8.5/10
Market CapQuality
$85.52B9/10

Large-cap with strong market position

Operating MarginProfitability
24.1%8/10

Strong operational efficiency at 24.1%

Areas to Watch

EHC0 concerns · Avg: 0/10

No major concerns identified

NGG4 concerns · Avg: 3.0/10
Price/BookValuation
9.0x4/10

Trading at 9.0x book value

Return on EquityProfitability
7.9%3/10

ROE of 7.9% — below average capital efficiency

Debt/EquityHealth
1.233/10

Elevated debt levels

Revenue GrowthGrowth
-11.3%2/10

Revenue declined 11.3%

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 : NGG

The strongest argument for NGG centers on Market Cap, Operating Margin. Profitability is solid with margins at 16.4% and operating margin at 24.1%. PEG of 1.09 suggests the stock is reasonably priced for its growth.

Bear Case : EHC

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

Bear Case : NGG

The primary concerns for NGG are Price/Book, Return on Equity, Debt/Equity.

Key Dynamics to Monitor

EHC profiles as a value stock while NGG is a declining play — different risk/reward profiles.

NGG carries more volatility with a beta of 0.64 — expect wider price swings.

EHC is growing revenue faster at 9.9% — sustainability is the question.

EHC generates stronger free cash flow (117M), providing more financial flexibility.

Bottom Line

EHC scores higher overall (70/100 vs 50/100). 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.

National Grid PLC ADR

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

National Grid plc transmits and distributes electricity and natural gas. The company is headquartered in London, the United Kingdom.

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