Encompass Health Corp (EHC)vsTenet Healthcare Corporation (THC)
EHC
Encompass Health Corp
$105.21
-1.34%
HEALTHCARE · Cap: $10.69B
THC
Tenet Healthcare Corporation
$186.91
+0.84%
HEALTHCARE · Cap: $16.06B
Smart Verdict
WallStSmart Research — data-driven comparison
Tenet Healthcare Corporation generates 260% more annual revenue ($21.86B vs $6.07B). EHC leads profitability with a 10.0% profit margin vs 7.8%. EHC appears more attractively valued with a PEG of 0.41. EHC earns a higher WallStSmart Score of 73/100 (B).
EHC
Strong Buy73
out of 100
Grade: B
THC
Strong Buy72
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+24.7%
Fair Value
$150.58
Current Price
$105.21
$45.37 discount
Margin of Safety
+78.9%
Fair Value
$1070.59
Current Price
$186.91
$883.68 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 29.9% YoY
Attractively priced relative to earnings
Every $100 of equity generates 30 in profit
Earnings expanding 87.6% YoY
Strong operational efficiency at 23.1%
Generating 1.5B in free cash flow
Areas to Watch
No major concerns identified
Distress zone — elevated risk
7.8% margin — thin
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 : THC
The strongest argument for THC centers on P/E Ratio, Return on Equity, EPS Growth. Revenue growth of 11.7% demonstrates continued momentum.
Bear Case : EHC
No major red flags identified for EHC, but monitor valuation.
Bear Case : THC
The primary concerns for THC are Altman Z-Score, Profit Margin, PEG Ratio.
Key Dynamics to Monitor
THC carries more volatility with a beta of 1.50 — expect wider price swings.
THC is growing revenue faster at 11.7% — sustainability is the question.
THC generates stronger free cash flow (1.5B), providing more financial flexibility.
Monitor MEDICAL CARE FACILITIES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
EHC scores higher overall (73/100 vs 72/100). THC offers better value entry with a 78.9% 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.
Tenet Healthcare Corporation
HEALTHCARE · MEDICAL CARE FACILITIES · USA
Tenet Healthcare Corporation is a diversified health services company. The company is headquartered in Dallas, Texas.
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