WallStSmart

DaVita HealthCare Partners Inc (DVA)vsEncompass Health Corp (EHC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

DaVita HealthCare Partners Inc generates 130% more annual revenue ($13.64B vs $5.94B). EHC leads profitability with a 9.5% profit margin vs 5.5%. EHC appears more attractively valued with a PEG of 0.41. EHC earns a higher WallStSmart Score of 69/100 (B-).

DVA

Buy

64

out of 100

Grade: C+

Growth: 6.0Profit: 7.0Value: 8.7Quality: 4.3
Piotroski: 3/9Altman Z: 1.22

EHC

Strong Buy

69

out of 100

Grade: B-

Growth: 7.3Profit: 7.5Value: 10.0Quality: 5.8
Piotroski: 4/9Altman Z: 2.09
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DVAUndervalued (+11.8%)

Margin of Safety

+11.8%

Fair Value

$163.57

Current Price

$149.31

$14.26 discount

UndervaluedFair: $163.57Overvalued
EHCUndervalued (+49.8%)

Margin of Safety

+49.8%

Fair Value

$226.00

Current Price

$95.86

$130.14 discount

UndervaluedFair: $226.00Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DVA3 strengths · Avg: 8.7/10
Return on EquityProfitability
64.8%10/10

Every $100 of equity generates 65 in profit

PEG RatioValuation
0.568/10

Growing faster than its price suggests

P/E RatioValuation
15.7x8/10

Attractively priced relative to earnings

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

Areas to Watch

DVA3 concerns · Avg: 2.7/10
Profit MarginProfitability
5.5%3/10

5.5% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Altman Z-ScoreHealth
1.222/10

Distress zone — elevated risk

EHC0 concerns · Avg: 0/10

No major concerns identified

Comparative Analysis Report

WallStSmart Research

Bull Case : DVA

The strongest argument for DVA centers on Return on Equity, PEG Ratio, P/E Ratio. PEG of 0.56 suggests the stock is reasonably priced for its growth.

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 : DVA

The primary concerns for DVA are Profit Margin, Piotroski F-Score, Altman Z-Score.

Bear Case : EHC

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

Key Dynamics to Monitor

DVA carries more volatility with a beta of 0.93 — expect wider price swings.

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

DVA generates stronger free cash flow (395M), providing more financial flexibility.

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

Bottom Line

EHC scores higher overall (69/100 vs 64/100). 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.

DaVita HealthCare Partners Inc

HEALTHCARE · MEDICAL CARE FACILITIES · USA

DaVita Inc. provides kidney dialysis services through a network of outpatient dialysis centers in the United States.

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.

Want to dig deeper into these stocks?