WallStSmart

Encompass Health Corp (EHC)vsUniversal Health Services Inc (UHS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Universal Health Services Inc generates 193% more annual revenue ($17.36B vs $5.94B). EHC leads profitability with a 9.5% profit margin vs 8.6%. EHC appears more attractively valued with a PEG of 0.41. UHS earns a higher WallStSmart Score of 76/100 (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

UHS

Strong Buy

76

out of 100

Grade: B+

Growth: 7.3Profit: 7.0Value: 10.0Quality: 7.0
Piotroski: 5/9Altman Z: 2.98
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
UHSUndervalued (+78.4%)

Margin of Safety

+78.4%

Fair Value

$1073.12

Current Price

$185.82

$887.30 discount

UndervaluedFair: $1073.12Overvalued

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

UHS4 strengths · Avg: 8.8/10
P/E RatioValuation
8.1x10/10

Attractively priced relative to earnings

Return on EquityProfitability
21.3%9/10

Every $100 of equity generates 21 in profit

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

EPS GrowthGrowth
42.7%8/10

Earnings expanding 42.7% YoY

Areas to Watch

EHC0 concerns · Avg: 0/10

No major concerns identified

UHS0 concerns · Avg: 0/10

No major concerns identified

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 : UHS

The strongest argument for UHS centers on P/E Ratio, Return on Equity, Price/Book. PEG of 1.29 suggests the stock is reasonably priced for its growth.

Bear Case : EHC

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

Bear Case : UHS

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

Key Dynamics to Monitor

UHS carries more volatility with a beta of 1.26 — expect wider price swings.

EHC is growing revenue faster at 9.9% — sustainability is the question.

UHS generates stronger free cash flow (293M), providing more financial flexibility.

Monitor MEDICAL CARE FACILITIES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

UHS scores higher overall (76/100 vs 69/100). 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.

Universal Health Services Inc

HEALTHCARE · MEDICAL CARE FACILITIES · USA

UnitedHealth Group Incorporated is an American for-profit multinational managed healthcare and insurance company based in Minnetonka, Minnesota. It offers health care products and insurance services.

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