WallStSmart

Encompass Health Corp (EHC)vsSeagate Technology PLC (STX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Seagate Technology PLC generates 69% more annual revenue ($10.06B vs $5.94B). STX leads profitability with a 19.6% profit margin vs 9.5%. EHC appears more attractively valued with a PEG of 0.41. STX earns a higher WallStSmart Score of 72/100 (B).

EHC

Strong Buy

69

out of 100

Grade: B-

Growth: 7.3Profit: 7.5Value: 10.0Quality: 5.8
Piotroski: 4/9Altman Z: 2.09

STX

Strong Buy

72

out of 100

Grade: B

Growth: 6.7Profit: 9.0Value: 8.7Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EHCUndervalued (+49.8%)

Margin of Safety

+49.8%

Fair Value

$226.00

Current Price

$95.86

$130.14 discount

UndervaluedFair: $226.00Overvalued
STXUndervalued (+1.9%)

Margin of Safety

+1.9%

Fair Value

$415.12

Current Price

$411.23

$3.89 discount

UndervaluedFair: $415.12Overvalued

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
24.8%9/10

Every $100 of equity generates 25 in profit

P/E RatioValuation
17.3x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
21.2%8/10

Earnings expanding 21.2% YoY

STX6 strengths · Avg: 8.7/10
EPS GrowthGrowth
67.7%10/10

Earnings expanding 67.7% YoY

Market CapQuality
$97.36B9/10

Large-cap with strong market position

Return on EquityProfitability
22.1%9/10

Every $100 of equity generates 22 in profit

PEG RatioValuation
0.678/10

Growing faster than its price suggests

Operating MarginProfitability
29.9%8/10

Strong operational efficiency at 29.9%

Revenue GrowthGrowth
21.5%8/10

Revenue surging 21.5% year-over-year

Areas to Watch

EHC0 concerns · Avg: 0/10

No major concerns identified

STX2 concerns · Avg: 2.0/10
P/E RatioValuation
49.0x2/10

Premium valuation, high expectations priced in

Price/BookValuation
195.8x2/10

Trading at 195.8x book value

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 : STX

The strongest argument for STX centers on EPS Growth, Market Cap, Return on Equity. Profitability is solid with margins at 19.6% and operating margin at 29.9%. Revenue growth of 21.5% demonstrates continued momentum.

Bear Case : EHC

No major red flags identified for EHC, but monitor valuation.

Bear Case : STX

The primary concerns for STX are P/E Ratio, Price/Book. A P/E of 49.0x leaves little room for execution misses.

Key Dynamics to Monitor

EHC profiles as a value stock while STX is a growth play — different risk/reward profiles.

STX carries more volatility with a beta of 1.65 — expect wider price swings.

STX is growing revenue faster at 21.5% — sustainability is the question.

STX generates stronger free cash flow (618M), providing more financial flexibility.

Bottom Line

STX scores higher overall (72/100 vs 69/100), backed by strong 19.6% margins and 21.5% revenue growth. EHC offers better value entry with a 49.8% margin of safety. Both earn "Strong Buy" and "Strong 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.

Seagate Technology PLC

TECHNOLOGY · COMPUTER HARDWARE · USA

Seagate Technology Holdings plc, an Irish public limited company (commonly referred to as Seagate) is an American data storage company.

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