Encompass Health Corp (EHC)vsEli Lilly and Company (LLY)
EHC
Encompass Health Corp
$121.71
+0.55%
HEALTHCARE · Cap: $11.99B
LLY
Eli Lilly and Company
$1,137.76
+1.98%
HEALTHCARE · Cap: $994.92B
Smart Verdict
WallStSmart Research — data-driven comparison
Eli Lilly and Company generates 1184% more annual revenue ($79.67B vs $6.21B). LLY leads profitability with a 33.5% profit margin vs 10.0%. EHC appears more attractively valued with a PEG of 0.41. LLY earns a higher WallStSmart Score of 76/100 (B+).
EHC
Strong Buy71
out of 100
Grade: B
LLY
Strong Buy76
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-52.0%
Fair Value
$74.61
Current Price
$121.71
$47.10 premium
Intrinsic value data unavailable for LLY.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Every $100 of equity generates 24 in profit
Mega-cap, among the largest globally
Every $100 of equity generates 79 in profit
Keeps 34 of every $100 in revenue as profit
Strong operational efficiency at 54.2%
Revenue surging 47.7% year-over-year
Earnings expanding 26.2% YoY
Areas to Watch
Elevated debt levels
Premium valuation, high expectations priced in
Elevated debt levels
Trading at 29.9x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : EHC
The strongest argument for EHC centers on PEG Ratio, Return on Equity. PEG of 0.41 suggests the stock is reasonably priced for its growth.
Bull Case : LLY
The strongest argument for LLY centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 33.5% and operating margin at 54.2%. Revenue growth of 47.7% demonstrates continued momentum.
Bear Case : EHC
The primary concerns for EHC are Debt/Equity.
Bear Case : LLY
The primary concerns for LLY are P/E Ratio, Debt/Equity, Price/Book. Debt-to-equity of 1.62 is elevated, increasing financial risk.
Key Dynamics to Monitor
EHC profiles as a value stock while LLY is a growth play — different risk/reward profiles.
EHC carries more volatility with a beta of 0.61 — expect wider price swings.
LLY is growing revenue faster at 47.7% — sustainability is the question.
LLY generates stronger free cash flow (7.8B), providing more financial flexibility.
Bottom Line
LLY scores higher overall (76/100 vs 71/100), backed by strong 33.5% margins and 47.7% revenue growth. Both earn "Strong Buy" and "Strong 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.
Eli Lilly and Company
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Eli Lilly and Company is an American pharmaceutical company headquartered in Indianapolis, Indiana, with offices in 18 countries. Its products are sold in approximately 125 countries.
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