Encompass Health Corp (EHC)vsPhilip Morris International Inc (PM)
EHC
Encompass Health Corp
$106.10
-0.98%
HEALTHCARE · Cap: $10.63B
PM
Philip Morris International Inc
$170.99
-0.07%
CONSUMER DEFENSIVE · Cap: $266.69B
Smart Verdict
WallStSmart Research — data-driven comparison
Philip Morris International Inc generates 584% more annual revenue ($41.49B vs $6.07B). PM leads profitability with a 26.7% 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+
PM
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+24.9%
Fair Value
$150.95
Current Price
$106.10
$44.85 discount
Margin of Safety
-48.0%
Fair Value
$115.64
Current Price
$170.99
$55.35 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Every $100 of equity generates 25 in profit
Earnings expanding 30.3% YoY
Mega-cap, among the largest globally
Strong operational efficiency at 36.0%
Keeps 27 of every $100 in revenue as profit
Areas to Watch
No major concerns identified
Expensive relative to growth rate
ROE of 0.0% — below average capital efficiency
Earnings declined 9.3%
Negative free cash flow — burning cash
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 : PM
The strongest argument for PM centers on Market Cap, Operating Margin, Profit Margin. Profitability is solid with margins at 26.7% and operating margin at 36.0%.
Bear Case : EHC
No major red flags identified for EHC, but monitor valuation.
Bear Case : PM
The primary concerns for PM are PEG Ratio, Return on Equity, EPS Growth.
Key Dynamics to Monitor
EHC profiles as a value stock while PM is a mature play — different risk/reward profiles.
EHC carries more volatility with a beta of 0.58 — expect wider price swings.
PM is growing revenue faster at 9.1% — sustainability is the question.
EHC generates stronger free cash flow (151M), providing more financial flexibility.
Bottom Line
EHC scores higher overall (75/100 vs 54/100). 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.
Philip Morris International Inc
CONSUMER DEFENSIVE · TOBACCO · USA
Philip Morris International Inc. (PMI) is a Swiss-American multinational cigarette and tobacco manufacturing company, with products sold in over 180 countries. The most recognized and best selling product of the company is Marlboro.
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