Encompass Health Corp (EHC)vsWestern Digital Corporation (WDC)
EHC
Encompass Health Corp
$105.21
-1.34%
HEALTHCARE · Cap: $10.69B
WDC
Western Digital Corporation
$442.36
+2.51%
TECHNOLOGY · Cap: $152.47B
Smart Verdict
WallStSmart Research — data-driven comparison
Western Digital Corporation generates 94% more annual revenue ($11.78B vs $6.07B). WDC leads profitability with a 55.3% profit margin vs 10.0%. EHC appears more attractively valued with a PEG of 0.41. WDC earns a higher WallStSmart Score of 79/100 (B+).
EHC
Strong Buy73
out of 100
Grade: B
WDC
Strong Buy79
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
Intrinsic value data unavailable for WDC.
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
Every $100 of equity generates 86 in profit
Keeps 55 of every $100 in revenue as profit
Strong operational efficiency at 37.0%
Revenue surging 45.5% year-over-year
Earnings expanding 477.2% YoY
Large-cap with strong market position
Areas to Watch
No major concerns identified
Moderate valuation
Trading at 21.2x book value
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 : WDC
The strongest argument for WDC centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 55.3% and operating margin at 37.0%. Revenue growth of 45.5% demonstrates continued momentum.
Bear Case : EHC
No major red flags identified for EHC, but monitor valuation.
Bear Case : WDC
The primary concerns for WDC are P/E Ratio, Price/Book.
Key Dynamics to Monitor
EHC profiles as a value stock while WDC is a growth play — different risk/reward profiles.
WDC carries more volatility with a beta of 2.16 — expect wider price swings.
WDC is growing revenue faster at 45.5% — sustainability is the question.
WDC generates stronger free cash flow (978M), providing more financial flexibility.
Bottom Line
WDC scores higher overall (79/100 vs 73/100), backed by strong 55.3% margins and 45.5% revenue growth. EHC offers better value entry with a 24.7% 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.
Western Digital Corporation
TECHNOLOGY · COMPUTER HARDWARE · USA
Western Digital Corporation (WDC, commonly known as Western Digital or WD) is an American computer hard disk drive manufacturer and data storage company, headquartered in San Jose, California. It designs, manufactures and sells data technology products, including storage devices, data center systems and cloud storage services.
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