AMN Healthcare Services (NYSE: AMN) and Quorum Health Corporation (NYSE:QHC) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, profitability, valuation and earnings.
This is a breakdown of recent ratings and price targets for AMN Healthcare Services and Quorum Health Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|AMN Healthcare Services||0||1||4||0||2.80|
|Quorum Health Corporation||1||3||0||0||1.75|
AMN Healthcare Services currently has a consensus target price of $45.00, suggesting a potential upside of 14.65%. Quorum Health Corporation has a consensus target price of $4.13, suggesting a potential downside of 11.48%. Given AMN Healthcare Services’ stronger consensus rating and higher probable upside, analysts plainly believe AMN Healthcare Services is more favorable than Quorum Health Corporation.
Earnings & Valuation
This table compares AMN Healthcare Services and Quorum Health Corporation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|AMN Healthcare Services||$1.95 billion||0.97||$236.01 million||$2.37||16.56|
|Quorum Health Corporation||$2.12 billion||0.07||$90.00 million||($5.51)||-0.85|
AMN Healthcare Services has higher revenue, but lower earnings than Quorum Health Corporation. Quorum Health Corporation is trading at a lower price-to-earnings ratio than AMN Healthcare Services, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
100.0% of AMN Healthcare Services shares are held by institutional investors. Comparatively, 81.4% of Quorum Health Corporation shares are held by institutional investors. 2.5% of AMN Healthcare Services shares are held by insiders. Comparatively, 4.7% of Quorum Health Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Volatility and Risk
AMN Healthcare Services has a beta of 0.47, indicating that its stock price is 53% less volatile than the S&P 500. Comparatively, Quorum Health Corporation has a beta of 8.31, indicating that its stock price is 731% more volatile than the S&P 500.
This table compares AMN Healthcare Services and Quorum Health Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|AMN Healthcare Services||6.01%||26.83%||10.54%|
|Quorum Health Corporation||-6.88%||-26.69%||-2.79%|
AMN Healthcare Services beats Quorum Health Corporation on 10 of the 13 factors compared between the two stocks.
About AMN Healthcare Services
AMN Healthcare Services, Inc. provides healthcare workforce solutions and staffing services at acute and sub-acute care hospitals and other healthcare facilities throughout the United States. The Company’s segments include nurse and allied solutions, locum tenens solutions and other workforce solutions. Through its suite of solutions, the Company provides technology, analytics and services to build and manage all or a portion of its clients’ healthcare workforce needs, from nurses, doctors and allied health professionals to healthcare leaders and executives. It offers managed services programs, vendor management systems, predictive analytics, workforce optimization consulting, recruitment process outsourcing, interim and executive leadership, and remote medical coding. It offers various services, including travel nurse staffing; local, or per diem, staffing; locum tenens staffing; allied staffing; physician permanent placement services, and health information management.
About Quorum Health Corporation
Quorum Health Corporation is an operator and manager of general acute care hospitals and outpatient services in the United States. The Company operates in two segments: Hospital operations, which includes its general acute care hospitals and related healthcare entities that provide inpatient and outpatient healthcare services, and hospital management advisory and consulting services, which includes Quorum Health Resources, LLC (QHR). It operates QHR, which is a hospital management advisory and consulting services that provides services to non-affiliated general acute care hospitals. Its hospitals and its affiliated businesses offer services, such as general acute care, emergency room, general and specialty surgery and rehabilitation services. On April 1, 2016, Community Health Systems, Inc. announced that its board of directors has approved the distribution to its stockholders of 100% of the common stock of a new, independent publicly traded company, Quorum Health Corporation.
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