Head to Head Contrast: Labcorp (NYSE:LH) & AMN Healthcare Services (NYSE:AMN)

Labcorp (NYSE:LH) and AMN Healthcare Services (NYSE:AMN) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, institutional ownership and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Labcorp	6.66%	16.29%	7.62%
AMN Healthcare Services	-0.95%	18.01%	5.19%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Labcorp and AMN Healthcare Services, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Labcorp	0	3	8	0	2.73
AMN Healthcare Services	2	3	4	0	2.22

Labcorp currently has a consensus target price of $308.00, suggesting a potential upside of 15.54%. AMN Healthcare Services has a consensus target price of $27.00, suggesting a potential downside of 16.89%. Given Labcorp’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Labcorp is more favorable than AMN Healthcare Services.

Risk and Volatility

Labcorp has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500. Comparatively, AMN Healthcare Services has a beta of 0.44, indicating that its stock price is 56% less volatile than the S&P 500.

Earnings & Valuation

This table compares Labcorp and AMN Healthcare Services”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Labcorp	$14.14 billion	1.55	$876.50 million	$11.29	23.61
AMN Healthcare Services	$2.73 billion	0.46	-$95.70 million	($0.87)	-37.34

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

Insider and Institutional Ownership

95.9% of Labcorp shares are owned by institutional investors. Comparatively, 99.2% of AMN Healthcare Services shares are owned by institutional investors. 0.8% of Labcorp shares are owned by company insiders. Comparatively, 1.1% of AMN Healthcare Services shares are owned 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.

Summary

Labcorp beats AMN Healthcare Services on 11 of the 14 factors compared between the two stocks.

About Labcorp

Labcorp Holdings, Inc. engages in providing medical testing services. The company was founded on April 16, 2024 and is headquartered in Burlington, NC.

About AMN Healthcare Services

AMN Healthcare Services, Inc. provides healthcare workforce solutions and staffing services to healthcare facilities in the United States. It operates through three segments: Nurse and Allied Solutions, Physician and Leadership Solutions, and Technology and Workforce Solutions. The Nurse and Allied Solutions segment offers travel nurse staffing, labor disruption staffing, local staffing, international nurse and allied permanent placement, and allied staffing solutions. The Physician and Leadership Solutions segment provides locum tenens staffing, healthcare interim leadership staffing, executive search, and physician permanent placement solutions. The Technology and Workforce Solutions segment offers language services, vendor management systems, workforce optimization, and outsourced solutions. The company also provides allied health professionals, such as physical therapists, respiratory therapists, occupational therapists, medical and radiology technologists, lab technicians, speech pathologists, rehabilitation assistants, and pharmacists. It offers its services under the brands, including AMN Healthcare, Nursefinders, HealthSource Global Staffing, O'Grady Peyton International, Connetics, Medical Search International, DRW Healthcare Staffing, and B.E. Smith. AMN Healthcare Services, Inc. was founded in 1985 and is headquartered in Dallas, Texas.