Encompass Health Corp (EHC)vsMoodys Corporation (MCO)
EHC
Encompass Health Corp
$106.10
-0.98%
HEALTHCARE · Cap: $10.63B
MCO
Moodys Corporation
$451.32
-1.26%
FINANCIAL SERVICES · Cap: $79.84B
Smart Verdict
WallStSmart Research — data-driven comparison
Moodys Corporation generates 30% more annual revenue ($7.87B vs $6.07B). MCO leads profitability with a 31.7% profit margin vs 10.0%. EHC appears more attractively valued with a PEG of 0.41. EHC earns a higher WallStSmart Score of 75/100 (B+).
EHC
Strong Buy75
out of 100
Grade: B+
MCO
Buy61
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+24.9%
Fair Value
$150.95
Current Price
$106.10
$44.85 discount
Intrinsic value data unavailable for MCO.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Every $100 of equity generates 25 in profit
Earnings expanding 30.3% YoY
Every $100 of equity generates 71 in profit
Keeps 32 of every $100 in revenue as profit
Strong operational efficiency at 45.7%
Large-cap with strong market position
Areas to Watch
No major concerns identified
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 26.3x book value
Comparative Analysis Report
WallStSmart ResearchBull 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 : MCO
The strongest argument for MCO centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 31.7% and operating margin at 45.7%.
Bear Case : EHC
No major red flags identified for EHC, but monitor valuation.
Bear Case : MCO
The primary concerns for MCO are PEG Ratio, P/E Ratio, Price/Book.
Key Dynamics to Monitor
EHC profiles as a value stock while MCO is a mature play — different risk/reward profiles.
MCO carries more volatility with a beta of 1.37 — expect wider price swings.
EHC is growing revenue faster at 9.0% — sustainability is the question.
MCO generates stronger free cash flow (844M), providing more financial flexibility.
Bottom Line
EHC scores higher overall (75/100 vs 61/100). 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.
Moodys Corporation
FINANCIAL SERVICES · FINANCIAL DATA & STOCK EXCHANGES · USA
Moody's Corporation, often referred to as Moody's, is an American business and financial services company. It is the holding company for Moody's Investors Service (MIS), an American credit rating agency, and Moody's Analytics (MA), an American provider of financial analysis software and services.
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