Head to Head Review: AMN Healthcare Services (AMN) vs. AMERIGROUP (AGP)

AMERIGROUP (NYSE: AGP) and AMN Healthcare Services (NYSE:AMN) are both mid-cap hospitals, clinics & primary care services companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, profitability, dividends and institutional ownership.

Volatility and Risk

AMERIGROUP has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500. Comparatively, AMN Healthcare Services has a beta of 0.47, suggesting that its share price is 53% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for AMERIGROUP and AMN Healthcare Services, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AMERIGROUP 0 0 0 0 N/A
AMN Healthcare Services 0 0 8 0 3.00

AMN Healthcare Services has a consensus price target of $51.00, suggesting a potential upside of 4.29%. Given AMN Healthcare Services’ higher possible upside, analysts clearly believe AMN Healthcare Services is more favorable than AMERIGROUP.

Profitability

This table compares AMERIGROUP and AMN Healthcare Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AMERIGROUP N/A N/A N/A
AMN Healthcare Services 5.99% 25.55% 10.52%

Earnings & Valuation

This table compares AMERIGROUP and AMN Healthcare Services’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AMERIGROUP N/A N/A N/A $2.56 2.07
AMN Healthcare Services $1.90 billion 1.23 $105.83 million $2.38 20.55

AMN Healthcare Services has higher revenue and earnings than AMERIGROUP. AMERIGROUP 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.

Summary

AMN Healthcare Services beats AMERIGROUP on 7 of the 9 factors compared between the two stocks.

About AMERIGROUP

AMERIGROUP Corporation is a multi-state managed healthcare company focused on serving people who receive healthcare benefits through publicly funded healthcare programs, including Medicaid, Children’s Health Insurance Program (CHIP), Medicaid expansion programs and Medicare Advantage. The Company offers a continuum of care management, including disease management, pharmacy integration, centralized telephonic case management, in-person case management within healthcare facilities, and home visit case management for some of its members. As of December 31, 2011, the Company provided a number of healthcare products to approximately 2,024,000 members. Effective February 1, 2012, it provides managed care services in Louisiana. On May 1, 2012, it acquired Health Plus. In November 2012, the Company sold its Virginia health plan to Inova Health System Foundation. In December 2012, WellPoint Inc acquired the Company.

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.

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