AAC Holdings (NYSE: AAC) and AMN Healthcare Services (NYSE:AMN) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, institutional ownership, earnings, risk and valuation.
Valuation and Earnings
This table compares AAC Holdings 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|
|AAC Holdings||$266.82 million||0.78||$30.06 million||($0.20)||-43.45|
|AMN Healthcare Services||$1.95 billion||0.93||$236.01 million||$2.37||15.97|
AMN Healthcare Services has higher revenue and earnings than AAC Holdings. AAC Holdings 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.
Volatility and Risk
AAC Holdings has a beta of 2.05, meaning that its share price is 105% more 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.
This table compares AAC Holdings and AMN Healthcare Services’ 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%|
This is a breakdown of current ratings for AAC Holdings and AMN Healthcare Services, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|AMN Healthcare Services||0||1||4||0||2.80|
AAC Holdings currently has a consensus target price of $8.50, indicating a potential downside of 2.19%. AMN Healthcare Services has a consensus target price of $45.80, indicating a potential upside of 21.00%. Given AMN Healthcare Services’ stronger consensus rating and higher possible upside, analysts clearly believe AMN Healthcare Services is more favorable than AAC Holdings.
Institutional & Insider Ownership
47.9% of AAC Holdings shares are held by institutional investors. Comparatively, 100.0% of AMN Healthcare Services shares are held by institutional investors. 37.3% of AAC Holdings shares are held by company insiders. Comparatively, 2.5% of AMN Healthcare Services shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
AMN Healthcare Services beats AAC Holdings on 12 of the 14 factors compared between the two stocks.
AAC Holdings Company Profile
AAC Holdings, Inc. is a provider of inpatient and outpatient substance abuse treatment services for individuals with drug and alcohol addiction. The Company performs drug testing and diagnostics laboratory services and provides physician services to its clients. As of June 30, 2016, the Company operated 12 residential substance abuse treatment facilities located throughout the United States, focused on delivering clinical care and treatment solutions across 1,139 beds, which includes 636 licensed detoxification beds, and 18 standalone outpatient centers. In addition, the Company focuses on expanding The Oxford Centre facility. As of June 30, 2016, the Company’s capacity at its Forterus treatment facility was 14 beds. The Company is engaged in deploying research-based treatment programs with structured curricula for detoxification, residential treatment, partial hospitalization and intensive outpatient care. The Company is also an Internet marketer in the addiction treatment industry.
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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