The Ensign Group (ENSG) & AMN Healthcare Services (AMN) Critical Review
The Ensign Group (NASDAQ: ENSG) and AMN Healthcare Services (NYSE:AMN) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, dividends, risk, analyst recommendations and institutional ownership.
This table compares The Ensign Group and AMN Healthcare Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The Ensign Group||2.54%||13.01%||6.14%|
|AMN Healthcare Services||6.01%||26.83%||10.54%|
Valuation & Earnings
This table compares The Ensign Group 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|
|The Ensign Group||$1.75 billion||0.61||$121.76 million||$0.84||25.01|
|AMN Healthcare Services||$1.95 billion||0.91||$236.01 million||$2.37||15.61|
AMN Healthcare Services has higher revenue and earnings than The Ensign Group. AMN Healthcare Services is trading at a lower price-to-earnings ratio than The Ensign Group, indicating that it is currently the more affordable of the two stocks.
The Ensign Group pays an annual dividend of $0.17 per share and has a dividend yield of 0.8%. AMN Healthcare Services does not pay a dividend. The Ensign Group pays out 20.2% of its earnings in the form of a dividend.
Volatility and Risk
The Ensign Group has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500. Comparatively, AMN Healthcare Services has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500.
Insider & Institutional Ownership
84.2% of The Ensign Group shares are owned by institutional investors. Comparatively, 100.0% of AMN Healthcare Services shares are owned by institutional investors. 6.2% of The Ensign Group shares are owned by company insiders. Comparatively, 2.5% of AMN Healthcare Services shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This is a breakdown of recent recommendations and price targets for The Ensign Group and AMN Healthcare Services, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The Ensign Group||2||0||3||0||2.20|
|AMN Healthcare Services||0||1||4||0||2.80|
The Ensign Group presently has a consensus target price of $22.00, suggesting a potential upside of 4.71%. AMN Healthcare Services has a consensus target price of $45.00, suggesting a potential upside of 21.62%. Given AMN Healthcare Services’ stronger consensus rating and higher possible upside, analysts clearly believe AMN Healthcare Services is more favorable than The Ensign Group.
AMN Healthcare Services beats The Ensign Group on 12 of the 16 factors compared between the two stocks.
The Ensign Group Company Profile
The Ensign Group, Inc., through its operating subsidiaries, provides healthcare services across the post-acute care continuum, as well as other ancillary businesses located in Arizona, California, Colorado, Idaho, Iowa, Kansas, Nebraska, Nevada, Oregon, South Carolina, Texas, Utah, Washington and Wisconsin. The Company’s subsidiaries provide skilled nursing, assisted living, home health and hospice, and other ancillary services. Its segments include transitional and skilled services segment, which includes the operation of skilled nursing facilities; assisted and independent living services segment, which includes the operation of assisted and independent living facilities; home health and hospice services segment, which includes its home health, home care and hospice businesses, and all other segment, which includes mobile diagnostics and other ancillary operations. As of July10, 2017, it operated in 226 healthcare facilities.
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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