Encompass Health Corp (EHC)vsPure Storage Inc (PSTG)
EHC
Encompass Health Corp
$95.86
-2.07%
HEALTHCARE · Cap: $9.65B
PSTG
Pure Storage Inc
$62.63
-4.31%
TECHNOLOGY · Cap: $20.68B
Smart Verdict
WallStSmart Research — data-driven comparison
Encompass Health Corp generates 62% more annual revenue ($5.94B vs $3.66B). EHC leads profitability with a 9.5% profit margin vs 5.1%. EHC appears more attractively valued with a PEG of 0.41. EHC earns a higher WallStSmart Score of 69/100 (B-).
EHC
Strong Buy69
out of 100
Grade: B-
PSTG
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+49.8%
Fair Value
$226.00
Current Price
$95.86
$130.14 discount
Margin of Safety
-195.4%
Fair Value
$25.74
Current Price
$62.63
$36.89 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
Attractively priced relative to earnings
Earnings expanding 21.2% YoY
Earnings expanding 140.6% YoY
Revenue surging 20.4% year-over-year
Areas to Watch
No major concerns identified
Trading at 14.3x book value
5.1% margin — thin
Premium valuation, high expectations priced in
Distress zone — elevated risk
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 : PSTG
The strongest argument for PSTG centers on EPS Growth, Revenue Growth. Revenue growth of 20.4% demonstrates continued momentum. PEG of 1.47 suggests the stock is reasonably priced for its growth.
Bear Case : EHC
No major red flags identified for EHC, but monitor valuation.
Bear Case : PSTG
The primary concerns for PSTG are Price/Book, Profit Margin, P/E Ratio. A P/E of 113.9x leaves little room for execution misses.
Key Dynamics to Monitor
EHC profiles as a value stock while PSTG is a growth play — different risk/reward profiles.
PSTG carries more volatility with a beta of 1.33 — expect wider price swings.
PSTG is growing revenue faster at 20.4% — sustainability is the question.
PSTG generates stronger free cash flow (201M), providing more financial flexibility.
Bottom Line
EHC scores higher overall (69/100 vs 59/100). 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.
Pure Storage Inc
TECHNOLOGY · COMPUTER HARDWARE · USA
Pure Storage, Inc. provides data storage technology and solutions in the United States and internationally. The company is headquartered in Mountain View, California.
Compare with Other MEDICAL CARE FACILITIES Stocks
Want to dig deeper into these stocks?