Premier (NASDAQ: PINC) and AMN Healthcare Services (NYSE:AMN) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, profitabiliy, valuation and risk.

Institutional and Insider Ownership

100.0% of AMN Healthcare Services shares are owned by institutional investors. 17.1% of Premier shares are owned by insiders. Comparatively, 2.5% of AMN Healthcare Services shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Premier and AMN Healthcare Services’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Premier $1.35 billion 1.32 $395.31 million $0.07 492.21
AMN Healthcare Services $1.93 billion 0.89 $226.88 million $2.37 15.17

Premier has higher revenue, but lower earnings than AMN Healthcare Services. AMN Healthcare Services is trading at a lower price-to-earnings ratio than Premier, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Premier and AMN Healthcare Services, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Premier 1 0 12 0 2.85
AMN Healthcare Services 0 1 4 0 2.80

Premier currently has a consensus target price of $38.80, indicating a potential upside of 12.63%. AMN Healthcare Services has a consensus target price of $45.80, indicating a potential upside of 27.40%. Given AMN Healthcare Services’ higher probable upside, analysts plainly believe AMN Healthcare Services is more favorable than Premier.

Risk and Volatility

Premier has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500. Comparatively, AMN Healthcare Services has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Premier 31.41% -13.95% 10.48%
AMN Healthcare Services 6.01% 26.83% 10.54%

Premier Company Profile

Premier, Inc. is a healthcare improvement company. The Company is uniting an alliance of approximately 3,750 United States hospitals and more than 130,000 other provider organizations to transform healthcare. The Company operates healthcare group purchasing organizations and also provides integrated data and analytics, supply chain solutions, advisory services, performance improvement collaborative and other services. The Company plays a role in the healthcare industry, collaborating with members to co-develop long-term innovations that reinvent and improve the way care is delivered to patients nationwide.

AMN Healthcare Services Company Profile

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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