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

Volatility & Risk

Healthways has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500. Comparatively, AMN Healthcare Services has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Healthways $808.05 million 1.95 $34.04 million ($2.72) -14.76
AMN Healthcare Services $1.93 billion 0.92 $226.88 million $2.27 16.30

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

Analyst Ratings

This is a summary of recent recommendations for Healthways and AMN Healthcare Services, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Healthways 0 1 7 0 2.88
AMN Healthcare Services 0 1 4 0 2.80

Healthways presently has a consensus target price of $32.19, suggesting a potential downside of 19.83%. AMN Healthcare Services has a consensus target price of $45.80, suggesting a potential upside of 23.78%. Given AMN Healthcare Services’ higher probable upside, analysts plainly believe AMN Healthcare Services is more favorable than Healthways.

Profitability

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

Net Margins Return on Equity Return on Assets
Healthways -18.90% 37.59% 11.18%
AMN Healthcare Services 5.80% 27.77% 10.31%

About Healthways

Tivity Health, Inc., formerly Healthways, Inc., is focused targeted population health for those aged 50 and older. The Company offers three programs: SilverSneakers senior fitness, Prime fitness and WholeHealth Living. The SilverSneakers senior fitness program is offered to members of Medicare Advantage, Medicare Supplement, and Group Retiree plans. The Company also offers Prime fitness, a fitness facility access program, through commercial health plans, employers and insurance exchanges. Its national network of fitness centers delivers both SilverSneakers and Prime fitness. As of December 31, 2016, the Company’s fitness networks encompassed approximately 16,000 participating locations and more than 1,000 alternative locations that provide classes outside of traditional fitness centers. As of December 31, 2016, the Company’s WholeHealth Living network included over 88,000 complementary, alternative, and physical medicine practitioners to serve individuals through health plans.

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.

Receive News & Ratings for Healthways Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Healthways Inc. and related companies with MarketBeat.com's FREE daily email newsletter.