Encompass Health Corp (EHC)vsNovartis AG ADR (NVS)
EHC
Encompass Health Corp
$113.80
-1.92%
HEALTHCARE · Cap: $11.13B
NVS
Novartis AG ADR
$158.83
-0.25%
HEALTHCARE · Cap: $290.96B
Smart Verdict
WallStSmart Research — data-driven comparison
Novartis AG ADR generates 835% more annual revenue ($56.69B vs $6.07B). NVS leads profitability with a 22.5% 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
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-56.8%
Fair Value
$72.34
Current Price
$113.80
$41.46 premium
Margin of Safety
-68.7%
Fair Value
$92.54
Current Price
$158.83
$66.29 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
Earnings expanding 30.3% YoY
Mega-cap, among the largest globally
Every $100 of equity generates 35 in profit
Strong operational efficiency at 31.8%
Keeps 23 of every $100 in revenue as profit
Generating 2.9B in free cash flow
Areas to Watch
Elevated debt levels
0.8% revenue growth
Grey zone — moderate risk
Elevated debt levels
Expensive relative to growth rate
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 : NVS
The strongest argument for NVS centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 22.5% and operating margin at 31.8%.
Bear Case : EHC
The primary concerns for EHC are Debt/Equity.
Bear Case : NVS
The primary concerns for NVS are Revenue Growth, Altman Z-Score, Debt/Equity.
Key Dynamics to Monitor
EHC carries more volatility with a beta of 0.60 — 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.
Monitor MEDICAL CARE FACILITIES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
EHC scores higher overall (75/100 vs 51/100). 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.
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.
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