Encompass Health Corp (EHC)vsAT&T Inc. (T)
EHC
Encompass Health Corp
$106.10
-0.98%
HEALTHCARE · Cap: $10.63B
T
AT&T Inc.
$25.16
-0.40%
COMMUNICATION SERVICES · Cap: $175.52B
Smart Verdict
WallStSmart Research — data-driven comparison
AT&T Inc. generates 1986% more annual revenue ($126.53B vs $6.07B). T leads profitability with a 16.9% 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+
T
Buy64
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
+21.5%
Fair Value
$32.17
Current Price
$25.16
$7.01 discount
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
Attractively priced relative to earnings
Large-cap with strong market position
Reasonable price relative to book value
Strong operational efficiency at 22.7%
Generating 2.7B in free cash flow
Areas to Watch
No major concerns identified
Expensive relative to growth rate
2.9% revenue growth
Earnings declined 11.3%
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 : T
The strongest argument for T centers on P/E Ratio, Market Cap, Price/Book. Profitability is solid with margins at 16.9% and operating margin at 22.7%.
Bear Case : EHC
No major red flags identified for EHC, but monitor valuation.
Bear Case : T
The primary concerns for T are PEG Ratio, Revenue Growth, EPS Growth.
Key Dynamics to Monitor
EHC carries more volatility with a beta of 0.58 — expect wider price swings.
EHC is growing revenue faster at 9.0% — sustainability is the question.
T generates stronger free cash flow (2.7B), providing more financial flexibility.
Monitor MEDICAL CARE FACILITIES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
EHC scores higher overall (75/100 vs 64/100). T offers better value entry with a 21.5% margin of safety. 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.
AT&T Inc.
COMMUNICATION SERVICES · TELECOM SERVICES · USA
AT&T Inc. is an American multinational conglomerate holding company, Delaware-registered but headquartered at Whitacre Tower in Downtown Dallas, Texas. It is the world largest telecommunications company, and the second largest provider of mobile telephone services.
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