Encompass Health Corp (EHC)vsUniversal Health Services Inc (UHS)
EHC
Encompass Health Corp
$105.21
-1.34%
HEALTHCARE · Cap: $10.69B
UHS
Universal Health Services Inc
$165.37
-0.42%
HEALTHCARE · Cap: $10.19B
Smart Verdict
WallStSmart Research — data-driven comparison
Universal Health Services Inc generates 193% more annual revenue ($17.76B vs $6.07B). EHC leads profitability with a 10.0% profit margin vs 8.6%. 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
UHS
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
+40.6%
Fair Value
$389.54
Current Price
$165.37
$224.17 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
Reasonable price relative to book value
Every $100 of equity generates 21 in profit
Areas to Watch
No major concerns identified
No major concerns identified
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 : UHS
The strongest argument for UHS centers on P/E Ratio, Price/Book, Return on Equity. PEG of 1.16 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 1.29 — expect wider price swings.
UHS is growing revenue faster at 9.6% — sustainability is the question.
UHS generates stronger free cash flow (184M), 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). UHS offers better value entry with a 40.6% 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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