EHC vs. CHE: Which Stock Is the Better Value Option?

Core Insights - The article compares two stocks in the Medical - Outpatient and Home Healthcare sector: Encompass Health (EHC) and Chemed (CHE), evaluating which stock offers better value for investors [1]. Valuation Metrics - EHC has a forward P/E ratio of 23.64, while CHE has a forward P/E of 24.73 [5]. - EHC's PEG ratio is 1.34, indicating a more favorable valuation compared to CHE's PEG ratio of 2.25 [5]. - EHC's P/B ratio is 3.82, significantly lower than CHE's P/B of 6.95, suggesting EHC is more undervalued relative to its book value [6]. Investment Ratings - EHC currently holds a Zacks Rank of 2 (Buy), while CHE has a Zacks Rank of 4 (Sell), indicating a more positive analyst outlook for EHC [3]. - Based on various valuation metrics, EHC has a Value grade of A, whereas CHE has a Value grade of C, further supporting the conclusion that EHC is the more attractive investment option [7].