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Stock Comparison · Valuation-led comparison

Encompass Health vs Waste Management: Which Stock Looks Stronger in 2026?

Structurally, Encompass Health and Waste Management are closely matched — neither holds a meaningful edge overall. Waste Management still has the edge on stability, which keeps the comparison from looking entirely one-sided. Both sides have seen trend damage — neither carries a clear market edge right now. With both trends damaged, the structural comparison carries most of the weight here.

The comparison is based on similar long-term financial trajectories, not sector labels. Both peer scores are relative to the Russell 1000 universe, making them directly comparable.

Updated 2026-05-17

On valuation, the clearer edge sits with Encompass Health Corporation, while the broader score remains level.

Trajectory Similarity
0.70
Similar
Peer-set rank: #10
within Encompass Health Corporation's functional peer set

These two companies are linked by measured long-term financial trajectory similarity within the selected peer universe.

The pair sits on a clearly comparable long-term path, though it is not a near-twin match.

The match is driven mainly by investment intensity and margin consistency.

Similarity drivers
investment intensitymargin consistency
How to read the score
0.85–1.00 · Very similar0.70–0.84 · Similar0.55–0.69 · Moderately similarbelow 0.55 · Loose match
Peer-Relative Score
EHC
Encompass Health Corporation
52
Peer-Score
Signal qualityMedium
Peer basis: Russell 1000
vs
WM
Waste Management, Inc.
52
Peer-Score
Signal qualitylow
Peer basis: Russell 1000

Scores reflect position relative to comparable companies with similar long-term financial trajectories.

Pricing shapes this comparison more than a broad operating gap.

Dimension spread: EHC vs WM Profitability 25 30 Stability 55 76 Valuation 83 57 Growth 45 53 EHC WM
Gap Ranking
#1 Valuation +26
#2 Stability +21
#3 Growth +8
#4 Profitability +5
Price Setup

Left means cheaper relative valuation. Higher means stronger structure.

Price setup map for EHC and WM Stronger + cheaper Stronger + richer Weaker + cheaper Weaker + richer EHCWM Relative valuation Structural strength

Waste Management, Inc. occupies the cheaper side of the setup map, although Encompass Health Corporation still holds the stronger structural profile.

Valuation position uses peer-relative PE percentile (idx_pct_pe) where available.

Entry today — historical context

Where EHC and WM each sit in their own 5-year price and valuation history.

BASED ON 5-YEAR HISTORY EHC Elevated · below norm 0th 50th 100th 7 pct gap WM Elevated · near norm 0th 50th 100th 88th 81st
EHC (88th percentile) and WM (81st percentile) both sit in the upper portion of their own 5-year ranges. The historical entry context is broadly similar for both. This reflects entry timing, not which company is structurally stronger.

Describes historical entry positioning only. Descriptive — not investment advice.

Relative Position vs Comparable Companies
Valuation
Both rank well on valuation, but Encompass Health Corporation still holds a clear edge.
Stability
On stability, the edge still sits with Waste Management, Inc., even though both profiles look solid.
Valuation — Dominant Gap
EHC
83
WM
57
Gap+26in favour of EHC

The multiple-based pricing edge comes from a forward P/E that is 7.5 turns lower.

What keeps the gap from being one-sided

There is still a strong counterforce in stability, so the lead stays clear without becoming a sweep.

What this means for the comparison

Valuation provides the clearer read here, while the broader score remains level.

Explore full peer positioning in AssetNext

Break down the EHC vs WM comparison across all dimensions with the full interactive tool.

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Other comparisons with conflicting dimension signals

Explore how EHC and WM each compare against other companies in their peer groups.

Rule-based, descriptive analysis only. Derived from peer percentile dimensions. Not investment advice. Peer groups are determined algorithmically based on structural similarity — not by sector classification alone.

How AssetNext Peer Scores Work

AssetNext scores reflect each company's structural position within its functional peer group — not a ranking against all stocks simultaneously. Peers are identified by similarity across eight financial dimensions, including revenue growth trajectory, margin structure, capital intensity, and earnings stability. A score of 75 means the company ranks in the top quartile within its own peer group, not the entire market.

Four dimension scores drive the overall peer score: Growth (revenue trajectory and expansion dynamics), Quality (margin structure and capital efficiency), Valuation (peer-relative pricing on standard multiples), and Stability (earnings consistency and financial predictability). Each dimension is scored 0–100 relative to the peer group, then combined into an overall peer score using equal weighting.

Because scores are peer-relative, the same company can have slightly different scores in different index universes. On comparison pages, both companies are shown within their shared peer universe wherever possible — so the scores are directly comparable. The peer basis is stated on each score card.

Scores are recalculated periodically as underlying financial data is updated. All analysis is descriptive and rule-based — AssetNext describes structural realities and never issues buy, sell or hold recommendations.