Encompass Health Corp (EHC)vsSumitomo Mitsui Financial Group Inc (SMFG)
EHC
Encompass Health Corp
$106.10
-0.98%
HEALTHCARE · Cap: $10.63B
SMFG
Sumitomo Mitsui Financial Group Inc
$21.43
-0.23%
FINANCIAL SERVICES · Cap: $139.48B
Smart Verdict
WallStSmart Research — data-driven comparison
Sumitomo Mitsui Financial Group Inc generates 61014% more annual revenue ($3.71T vs $6.07B). SMFG leads profitability with a 20.7% profit margin vs 10.0%. EHC appears more attractively valued with a PEG of 0.41. SMFG earns a higher WallStSmart Score of 76/100 (B+).
EHC
Strong Buy75
out of 100
Grade: B+
SMFG
Strong Buy76
out of 100
Grade: B+
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 SMFG.
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
Reasonable price relative to book value
Strong operational efficiency at 39.3%
Large-cap with strong market position
Keeps 21 of every $100 in revenue as profit
Growing faster than its price suggests
Attractively priced relative to earnings
Areas to Watch
No major concerns identified
ROE of 4.9% — below average capital efficiency
Distress zone — elevated risk
Elevated debt levels
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 : SMFG
The strongest argument for SMFG centers on Price/Book, Operating Margin, Market Cap. Profitability is solid with margins at 20.7% and operating margin at 39.3%. Revenue growth of 21.8% demonstrates continued momentum.
Bear Case : EHC
No major red flags identified for EHC, but monitor valuation.
Bear Case : SMFG
The primary concerns for SMFG are Return on Equity, Altman Z-Score, Debt/Equity. Debt-to-equity of 3.89 is elevated, increasing financial risk.
Key Dynamics to Monitor
EHC profiles as a value stock while SMFG is a growth play — different risk/reward profiles.
EHC carries more volatility with a beta of 0.58 — expect wider price swings.
SMFG is growing revenue faster at 21.8% — sustainability is the question.
Monitor MEDICAL CARE FACILITIES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
SMFG scores higher overall (76/100 vs 75/100), backed by strong 20.7% margins and 21.8% revenue growth. EHC offers better value entry with a 24.9% margin of safety. 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.
Sumitomo Mitsui Financial Group Inc
FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA
Sumitomo Mitsui Financial Group, Inc. provides commercial banking, finance leasing, securities, consumer finance, and other services primarily in Japan. The company is headquartered in Tokyo, Japan.
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