WallStSmart

Encompass Health Corp (EHC)vsNational HealthCare Corporation (NHC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Encompass Health Corp generates 298% more annual revenue ($6.07B vs $1.53B). EHC leads profitability with a 10.0% profit margin vs 8.1%. 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: 7.5Value: 6.7Quality: 6.0
Piotroski: 6/9Altman Z: 2.12

NHC

Buy

56

out of 100

Grade: C

Growth: 6.0Profit: 6.0Value: 5.3Quality: 9.0
Piotroski: 5/9Altman Z: 3.70
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EHCSignificantly Overvalued (-57.0%)

Margin of Safety

-57.0%

Fair Value

$72.27

Current Price

$104.01

$31.74 premium

UndervaluedFair: $72.27Overvalued
NHCSignificantly Overvalued (-73.9%)

Margin of Safety

-73.9%

Fair Value

$96.80

Current Price

$192.13

$95.33 premium

UndervaluedFair: $96.80Overvalued

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

NHC4 strengths · Avg: 9.0/10
Debt/EquityHealth
0.0410/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
3.7010/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.828/10

Growing faster than its price suggests

Price/BookValuation
2.7x8/10

Reasonable price relative to book value

Areas to Watch

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

Elevated debt levels

NHC1 concerns · Avg: 4.0/10
Revenue GrowthGrowth
2.2%4/10

2.2% revenue growth

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 : NHC

The strongest argument for NHC centers on Debt/Equity, Altman Z-Score, PEG Ratio. PEG of 0.82 suggests the stock is reasonably priced for its growth.

Bear Case : EHC

The primary concerns for EHC are Debt/Equity.

Bear Case : NHC

The primary concerns for NHC are Revenue Growth.

Key Dynamics to Monitor

NHC carries more volatility with a beta of 0.65 — 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 56/100). 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 HealthCare Corporation

HEALTHCARE · MEDICAL CARE FACILITIES · USA

National HealthCare Corporation operates, manages, and provides services to skilled nursing facilities, assisted living facilities, independent living facilities, home health programs, and a behavioral health hospital. The company is headquartered in Murfreesboro, Tennessee.

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