WallStSmart

Enhabit Inc. (EHAB)vsEncompass Health Corp (EHC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Encompass Health Corp generates 472% more annual revenue ($6.07B vs $1.06B). EHC leads profitability with a 10.0% profit margin vs -0.4%. EHC earns a higher WallStSmart Score of 75/100 (B+).

EHAB

Hold

48

out of 100

Grade: D+

Growth: 5.3Profit: 4.0Value: 6.7Quality: 6.0
Piotroski: 5/9Altman Z: 1.71

EHC

Strong Buy

75

out of 100

Grade: B+

Growth: 8.0Profit: 8.0Value: 8.7Quality: 5.8
Piotroski: 5/9Altman Z: 2.09
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EHABUndervalued (+77.5%)

Margin of Safety

+77.5%

Fair Value

$50.06

Current Price

$13.78

$36.28 discount

UndervaluedFair: $50.06Overvalued
EHCUndervalued (+24.9%)

Margin of Safety

+24.9%

Fair Value

$150.95

Current Price

$104.82

$46.13 discount

UndervaluedFair: $150.95Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EHAB2 strengths · Avg: 10.0/10
Price/BookValuation
1.3x10/10

Reasonable price relative to book value

EPS GrowthGrowth
8667.0%10/10

Earnings expanding 8667.0% YoY

EHC4 strengths · Avg: 8.8/10
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

P/E RatioValuation
17.9x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
30.3%8/10

Earnings expanding 30.3% YoY

Areas to Watch

EHAB4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
4.7%4/10

4.7% revenue growth

Altman Z-ScoreHealth
1.714/10

Distress zone — elevated risk

Market CapQuality
$706.40M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-0.5%2/10

ROE of -0.5% — below average capital efficiency

EHC0 concerns · Avg: 0/10

No major concerns identified

Comparative Analysis Report

WallStSmart Research

Bull Case : EHAB

The strongest argument for EHAB centers on Price/Book, EPS 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 : EHAB

The primary concerns for EHAB are Revenue Growth, Altman Z-Score, Market Cap.

Bear Case : EHC

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

Key Dynamics to Monitor

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

EHAB carries more volatility with a beta of 0.96 — 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 48/100). EHAB offers better value entry with a 77.5% 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.

Enhabit Inc.

HEALTHCARE · MEDICAL CARE FACILITIES · USA

Enhabit, Inc. provides home health and hospice services in the United States.

Visit Website →

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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