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EHC vs LLY

EHC
Encompass Health Corporation
BULLISH
Price
$101.98
Market Cap
$10.14B
Sector
Healthcare
AI Confidence
85%
LLY
Eli Lilly and Company
NEUTRAL
Price
$958.65
Market Cap
$858.01B
Sector
Healthcare
AI Confidence
85%

Valuation

P/E Ratio
EHC
18.37
LLY
41.7
Forward P/E
EHC
15.74
LLY
22.78
P/B Ratio
EHC
4.18
LLY
32.33
P/S Ratio
EHC
1.71
LLY
13.16
EV/EBITDA
EHC
9.86
LLY
27.08

Profitability

Gross Margin
EHC
43.21%
LLY
83.04%
Operating Margin
EHC
18.35%
LLY
44.9%
Profit Margin
EHC
9.54%
LLY
31.67%
ROE
EHC
24.82%
LLY
101.16%
ROA
EHC
9.66%
LLY
19.41%

Growth

Revenue Growth
EHC
9.9%
LLY
42.6%
Earnings Growth
EHC
21.2%
LLY
51.4%

Financial Health

Debt/Equity
EHC
0.83
LLY
1.65
Current Ratio
EHC
1.08
LLY
1.58
Quick Ratio
EHC
0.83
LLY
0.78

Dividends

Dividend Yield
EHC
0.75%
LLY
0.68%
Payout Ratio
EHC
12.97%
LLY
26.14%

AI Verdict

EHC BULLISH

EHC presents a stable financial profile with a Piotroski F-Score of 4/9 and a significant valuation gap between its defensive Graham Number ($55.18) and growth-based Intrinsic Value ($163.72). The company exhibits exceptional operational efficiency with an ROE of 24.82% and a highly attractive PEG ratio of 0.41, suggesting the stock is undervalued relative to its earnings growth. While insider sentiment is bearish and technical trends are currently weak, the long-term fundamental trajectory is supported by a 25-quarter track record of consistent earnings beats. The current price of $101.98 represents a reasonable entry point given the analyst target of $142.73.

Strengths
Exceptional earnings track record with consistent beats over 25 quarters
Very low PEG ratio (0.41) indicating strong growth at a reasonable price
High Return on Equity (24.82%) demonstrating efficient capital use
Risks
Bearish insider activity with significant selling by the CEO and other officers
Weak technical trend (0/100) indicating short-term price momentum is negative
Tight liquidity with a current ratio of 1.08
LLY NEUTRAL

LLY shows neutral fundamentals based on deterministic rules. Financial strength is weak (F-Score 3/9). Mixed signals with both opportunities and risks present.

Strengths
Strong profitability (31.7% margin)
Strong revenue growth of 42.6%
Strong ROE of 101.2%
Risks
High valuation with P/E of 41.7
Premium vs Graham Number ($123.85)
Weak financial trend (Piotroski F-Score: 3/9)

Compare Another Pair

EHC vs LLY: Head-to-Head Comparison

This page compares Encompass Health Corporation (EHC) and Eli Lilly and Company (LLY) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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