Encompass Health Corp (EHC)vsMedtronic PLC (MDT)
EHC
Encompass Health Corp
$106.10
-0.98%
HEALTHCARE · Cap: $10.63B
MDT
Medtronic PLC
$76.15
-2.32%
HEALTHCARE · Cap: $100.09B
Smart Verdict
WallStSmart Research — data-driven comparison
Medtronic PLC generates 485% more annual revenue ($35.48B vs $6.07B). MDT leads profitability with a 13.0% 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+
MDT
Buy58
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
Margin of Safety
+27.7%
Fair Value
$107.79
Current Price
$76.15
$31.64 discount
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
Large-cap with strong market position
Reasonable price relative to book value
Strong operational efficiency at 20.0%
Generating 2.3B in free cash flow
Areas to Watch
No major concerns identified
Earnings declined 11.8%
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 : MDT
The strongest argument for MDT centers on Market Cap, Price/Book, Operating Margin. PEG of 1.36 suggests the stock is reasonably priced for its growth.
Bear Case : EHC
No major red flags identified for EHC, but monitor valuation.
Bear Case : MDT
The primary concerns for MDT are EPS Growth.
Key Dynamics to Monitor
MDT carries more volatility with a beta of 0.63 — expect wider price swings.
EHC is growing revenue faster at 9.0% — sustainability is the question.
MDT generates stronger free cash flow (2.3B), providing more financial flexibility.
Monitor MEDICAL CARE FACILITIES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
EHC scores higher overall (75/100 vs 58/100). MDT offers better value entry with a 27.7% margin of safety. 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.
Medtronic PLC
HEALTHCARE · MEDICAL DEVICES · USA
Medtronic plc is an American-Irish registered medical device company that primarily operates in the United States. Medtronic has an operational and executive headquarters in Fridley, Minnesota in the US.
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