Encompass Health Corp (EHC)vsRaytheon Technologies Corp (RTX)
EHC
Encompass Health Corp
$106.10
-0.98%
HEALTHCARE · Cap: $10.63B
RTX
Raytheon Technologies Corp
$176.09
-0.39%
INDUSTRIALS · Cap: $238.07B
Smart Verdict
WallStSmart Research — data-driven comparison
Raytheon Technologies Corp generates 1390% more annual revenue ($90.37B vs $6.07B). EHC leads profitability with a 10.0% profit margin vs 8.0%. 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+
RTX
Buy59
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
-51.9%
Fair Value
$116.35
Current Price
$176.09
$59.74 premium
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
Mega-cap, among the largest globally
Earnings expanding 32.5% YoY
Generating 1.2B in free cash flow
Areas to Watch
No major concerns identified
Expensive relative to growth rate
Premium valuation, high expectations priced in
Distress zone — elevated risk
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 : RTX
The strongest argument for RTX centers on Market Cap, EPS Growth, Free Cash Flow.
Bear Case : EHC
No major red flags identified for EHC, but monitor valuation.
Bear Case : RTX
The primary concerns for RTX are PEG Ratio, P/E Ratio, Altman Z-Score.
Key Dynamics to Monitor
EHC carries more volatility with a beta of 0.58 — expect wider price swings.
EHC is growing revenue faster at 9.0% — sustainability is the question.
RTX generates stronger free cash flow (1.2B), 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.
Raytheon Technologies Corp
INDUSTRIALS · AEROSPACE & DEFENSE · USA
Raytheon Technologies Corporation is an American multinational aerospace and defense conglomerate headquartered in Waltham, Massachusetts. It is one of the largest aerospace, intelligence services providers, and defense manufacturers in the world by revenue and market capitalization. Raytheon Technologies (RTX) researches, develops, and manufactures advanced technology products in the aerospace and defense industry, including aircraft engines, avionics, aerostructures, cybersecurity, guided missiles, air defense systems, satellites, and drones.
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