WallStSmart

Aveanna Healthcare Holdings Inc (AVAH)vsEncompass Health Corp (EHC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Encompass Health Corp generates 141% more annual revenue ($6.07B vs $2.52B). AVAH leads profitability with a 10.4% profit margin vs 10.0%. AVAH trades at a lower P/E of 7.0x. EHC earns a higher WallStSmart Score of 75/100 (B+).

AVAH

Buy

62

out of 100

Grade: C+

Growth: 8.7Profit: 7.5Value: 5.7Quality: 3.5
Piotroski: 4/9Altman Z: 0.95

EHC

Strong Buy

75

out of 100

Grade: B+

Growth: 8.0Profit: 7.5Value: 6.7Quality: 6.0
Piotroski: 6/9Altman Z: 2.12
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AVAHSignificantly Overvalued (-84.3%)

Margin of Safety

-84.3%

Fair Value

$4.33

Current Price

$8.48

$4.15 premium

UndervaluedFair: $4.33Overvalued
EHCSignificantly Overvalued (-57.0%)

Margin of Safety

-57.0%

Fair Value

$72.26

Current Price

$101.31

$29.05 premium

UndervaluedFair: $72.26Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AVAH4 strengths · Avg: 9.5/10
P/E RatioValuation
7.0x10/10

Attractively priced relative to earnings

Return on EquityProfitability
36.8%10/10

Every $100 of equity generates 37 in profit

EPS GrowthGrowth
612.0%10/10

Earnings expanding 612.0% YoY

Revenue GrowthGrowth
15.9%8/10

15.9% revenue growth

EHC4 strengths · Avg: 8.8/10
PEG RatioValuation
0.4110/10

Growing faster than its price suggests

Return on EquityProfitability
24.2%9/10

Every $100 of equity generates 24 in profit

P/E RatioValuation
17.5x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
30.3%8/10

Earnings expanding 30.3% YoY

Areas to Watch

AVAH4 concerns · Avg: 2.0/10
Market CapQuality
$1.84B3/10

Smaller company, higher risk/reward

Free Cash FlowQuality
$-208,0002/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.952/10

Distress zone — elevated risk

Debt/EquityHealth
6.261/10

Elevated debt levels

EHC1 concerns · Avg: 3.0/10
Debt/EquityHealth
1.113/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : AVAH

The strongest argument for AVAH centers on P/E Ratio, Return on Equity, EPS Growth. Revenue growth of 15.9% demonstrates continued momentum.

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.

Bear Case : AVAH

The primary concerns for AVAH are Market Cap, Free Cash Flow, Altman Z-Score. Debt-to-equity of 6.26 is elevated, increasing financial risk.

Bear Case : EHC

The primary concerns for EHC are Debt/Equity.

Key Dynamics to Monitor

AVAH profiles as a growth stock while EHC is a value play — different risk/reward profiles.

AVAH carries more volatility with a beta of 1.93 — expect wider price swings.

AVAH is growing revenue faster at 15.9% — sustainability is the question.

EHC generates stronger free cash flow (151M), providing more financial flexibility.

Bottom Line

EHC scores higher overall (75/100 vs 62/100). 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.

Aveanna Healthcare Holdings Inc

HEALTHCARE · MEDICAL CARE FACILITIES · USA

Aveanna Healthcare Holdings Inc., a diversified home care platform company, offers private duty nursing (PDN) services, adult home health and palliative care, pediatric home therapy, and enteral nutrition services in the United States. The company is headquartered in Atlanta, Georgia.

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.

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