WallStSmart

Brookdale Senior Living Inc (BKD)vsEncompass Health Corp (EHC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Encompass Health Corp generates 99% more annual revenue ($6.07B vs $3.05B). EHC leads profitability with a 10.0% profit margin vs -8.6%. BKD appears more attractively valued with a PEG of 0.28. EHC earns a higher WallStSmart Score of 75/100 (B+).

BKD

Hold

38

out of 100

Grade: F

Growth: 3.3Profit: 3.0Value: 8.3Quality: 4.5
Piotroski: 2/9Altman Z: -0.40

EHC

Strong Buy

75

out of 100

Grade: B+

Growth: 8.0Profit: 8.0Value: 8.0Quality: 5.8
Piotroski: 5/9Altman Z: 2.09
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BKDUndervalued (+65.2%)

Margin of Safety

+65.2%

Fair Value

$48.18

Current Price

$12.98

$35.20 discount

UndervaluedFair: $48.18Overvalued
EHCUndervalued (+24.9%)

Margin of Safety

+24.9%

Fair Value

$150.95

Current Price

$106.10

$44.85 discount

UndervaluedFair: $150.95Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BKD2 strengths · Avg: 10.0/10
PEG RatioValuation
0.2810/10

Growing faster than its price suggests

Debt/EquityHealth
-816.7310/10

Conservative balance sheet, low leverage

EHC3 strengths · Avg: 9.0/10
PEG RatioValuation
0.4110/10

Growing faster than its price suggests

Return on EquityProfitability
25.2%9/10

Every $100 of equity generates 25 in profit

EPS GrowthGrowth
30.3%8/10

Earnings expanding 30.3% YoY

Areas to Watch

BKD4 concerns · Avg: 3.0/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Operating MarginProfitability
3.8%3/10

Operating margin of 3.8%

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Return on EquityProfitability
-308.2%2/10

ROE of -308.2% — below average capital efficiency

EHC0 concerns · Avg: 0/10

No major concerns identified

Comparative Analysis Report

WallStSmart Research

Bull Case : BKD

The strongest argument for BKD centers on PEG Ratio, Debt/Equity. PEG of 0.28 suggests the stock is reasonably priced for its growth.

Bull 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.

Bear Case : BKD

The primary concerns for BKD are EPS Growth, Operating Margin, Piotroski F-Score.

Bear Case : EHC

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

Key Dynamics to Monitor

BKD profiles as a turnaround stock while EHC is a value play — different risk/reward profiles.

BKD carries more volatility with a beta of 0.69 — expect wider price swings.

EHC is growing revenue faster at 9.0% — sustainability is the question.

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

Bottom Line

EHC scores higher overall (75/100 vs 38/100). BKD offers better value entry with a 65.2% margin of safety. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Brookdale Senior Living Inc

HEALTHCARE · MEDICAL CARE FACILITIES · USA

Brookdale Senior Living Inc. owns and operates senior communities in the United States. The company is headquartered in Brentwood, Tennessee.

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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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