Encompass Health Corp (EHC)vsNovartis AG ADR (NVS)
EHC
Encompass Health Corp
$104.01
+4.18%
HEALTHCARE · Cap: $10.07B
NVS
Novartis AG ADR
$148.38
-0.55%
HEALTHCARE · Cap: $273.77B
Smart Verdict
WallStSmart Research — data-driven comparison
Novartis AG ADR generates 833% more annual revenue ($56.58B vs $6.07B). NVS leads profitability with a 23.9% 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 Buy75
out of 100
Grade: B+
NVS
Hold49
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-57.0%
Fair Value
$72.27
Current Price
$104.01
$31.74 premium
Margin of Safety
-62.1%
Fair Value
$91.39
Current Price
$148.38
$56.99 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Every $100 of equity generates 24 in profit
Attractively priced relative to earnings
Earnings expanding 30.3% YoY
Mega-cap, among the largest globally
Every $100 of equity generates 35 in profit
Strong operational efficiency at 30.5%
Keeps 24 of every $100 in revenue as profit
Generating 2.9B in free cash flow
Areas to Watch
Elevated debt levels
Grey zone — moderate risk
Elevated debt levels
Expensive relative to growth rate
Revenue declined 0.7%
Comparative Analysis Report
WallStSmart ResearchBull 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 : NVS
The strongest argument for NVS centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 23.9% and operating margin at 30.5%.
Bear Case : EHC
The primary concerns for EHC are Debt/Equity.
Bear Case : NVS
The primary concerns for NVS are Altman Z-Score, Debt/Equity, PEG Ratio.
Key Dynamics to Monitor
EHC profiles as a value stock while NVS is a declining play — different risk/reward profiles.
EHC carries more volatility with a beta of 0.59 — expect wider price swings.
EHC is growing revenue faster at 9.0% — sustainability is the question.
NVS generates stronger free cash flow (2.9B), providing more financial flexibility.
Bottom Line
EHC scores higher overall (75/100 vs 49/100). Both earn "Strong Buy" and "Hold" 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.
Novartis AG ADR
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Novartis AG researches, develops, manufactures and markets medical devices worldwide. The company is headquartered in Basel, Switzerland.
Visit Website →Compare with Other MEDICAL CARE FACILITIES Stocks
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