WallStSmart

Encompass Health Corp (EHC)vsHealthcare Services Group Inc (HCSG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Encompass Health Corp generates 225% more annual revenue ($6.07B vs $1.86B). EHC leads profitability with a 10.0% profit margin vs 6.6%. EHC appears more attractively valued with a PEG of 0.41. EHC earns a higher WallStSmart Score of 75/100 (B+).

EHC

Strong Buy

75

out of 100

Grade: B+

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

HCSG

Buy

59

out of 100

Grade: C

Growth: 6.0Profit: 5.5Value: 5.7Quality: 9.0
Piotroski: 5/9Altman Z: 4.68
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EHCSignificantly Overvalued (-56.8%)

Margin of Safety

-56.8%

Fair Value

$72.34

Current Price

$110.90

$38.56 premium

UndervaluedFair: $72.34Overvalued

Intrinsic value data unavailable for HCSG.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EHC3 strengths · Avg: 9.0/10
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

EPS GrowthGrowth
30.3%8/10

Earnings expanding 30.3% YoY

HCSG5 strengths · Avg: 9.2/10
EPS GrowthGrowth
60.9%10/10

Earnings expanding 60.9% YoY

Debt/EquityHealth
0.0310/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.6810/10

Safe zone — low bankruptcy risk

P/E RatioValuation
13.7x8/10

Attractively priced relative to earnings

Price/BookValuation
3.0x8/10

Reasonable price relative to book value

Areas to Watch

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

Elevated debt levels

HCSG4 concerns · Avg: 3.5/10
PEG RatioValuation
2.394/10

Expensive relative to growth rate

Revenue GrowthGrowth
2.7%4/10

2.7% revenue growth

Market CapQuality
$1.61B3/10

Smaller company, higher risk/reward

Profit MarginProfitability
6.6%3/10

6.6% margin — thin

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : HCSG

The strongest argument for HCSG centers on EPS Growth, Debt/Equity, Altman Z-Score.

Bear Case : EHC

The primary concerns for EHC are Debt/Equity.

Bear Case : HCSG

The primary concerns for HCSG are PEG Ratio, Revenue Growth, Market Cap.

Key Dynamics to Monitor

HCSG carries more volatility with a beta of 0.82 — 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.

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

Bottom Line

EHC scores higher overall (75/100 vs 59/100). 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.

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.

Healthcare Services Group Inc

HEALTHCARE · MEDICAL CARE FACILITIES · USA

Healthcare Services Group, Inc. provides management, administrative, and operational services to the cleaning, laundry, bedding, facility maintenance, and dietary services departments of nursing homes, retirement complexes, rehabilitation centers, and hospitals in the United States. . The company is headquartered in Bensalem, Pennsylvania.

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