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

Profitability

This table compares AMN Healthcare Services and Surgery Partners’ 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%
Surgery Partners 0.63% 6.02% 0.81%

Valuation and Earnings

This table compares AMN Healthcare Services and Surgery Partners’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
AMN Healthcare Services $1.95 billion 0.92 $236.01 million $2.37 15.76
Surgery Partners $1.13 billion 0.46 $231.39 million $0.15 70.67

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

Risk & Volatility

AMN Healthcare Services has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500. Comparatively, Surgery Partners has a beta of 1.71, meaning that its share price is 71% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for AMN Healthcare Services and Surgery Partners, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AMN Healthcare Services 0 1 4 0 2.80
Surgery Partners 1 1 4 0 2.50

AMN Healthcare Services presently has a consensus price target of $45.80, indicating a potential upside of 22.62%. Surgery Partners has a consensus price target of $20.40, indicating a potential upside of 92.45%. Given Surgery Partners’ higher possible upside, analysts clearly believe Surgery Partners is more favorable than AMN Healthcare Services.

Institutional & Insider Ownership

100.0% of AMN Healthcare Services shares are held by institutional investors. Comparatively, 38.4% of Surgery Partners shares are held by institutional investors. 2.5% of AMN Healthcare Services shares are held by company insiders. Comparatively, 7.5% of Surgery Partners shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

AMN Healthcare Services beats Surgery Partners on 9 of the 13 factors compared between the two stocks.

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.

Surgery Partners Company Profile

Surgery Partners, Inc. is a healthcare services company. The Company operates in three lines of business across the United States: Surgical Facility Services, Ancillary Services and Optical Services. The Company’s Surgical Facility Services segment consists of the operation of ambulatory surgery centers (ASCs) and surgical hospitals, which include its anesthesia services. The Company’s surgical facilities primarily provide non-emergency surgical procedures across a range of specialties, which include gastrointestinal (GI), general surgery, ophthalmology, orthopedics and pain management. The Company’s Ancillary Services segment consists of a diagnostic laboratory, a specialty pharmacy and multi-specialty physician practices. The Company’s physician practices include its owned and operated physician practices pursuant to long-term management service agreements. The Company’s Optical Services segment consists of an optical laboratory, an optical products group purchasing organization.

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