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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for AMN Healthcare Services and BioScrip, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AMN Healthcare Services 0 1 4 0 2.80
BioScrip 0 0 4 0 3.00

AMN Healthcare Services presently has a consensus target price of $45.00, indicating a potential upside of 14.65%. BioScrip has a consensus target price of $3.94, indicating a potential upside of 47.47%. Given BioScrip’s stronger consensus rating and higher possible upside, analysts plainly believe BioScrip is more favorable than AMN Healthcare Services.

Insider & Institutional Ownership

100.0% of AMN Healthcare Services shares are owned by institutional investors. Comparatively, 84.2% of BioScrip shares are owned by institutional investors. 2.5% of AMN Healthcare Services shares are owned by company insiders. Comparatively, 0.8% of BioScrip shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares AMN Healthcare Services and BioScrip’s 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%
BioScrip -8.03% N/A -7.39%

Risk and Volatility

AMN Healthcare Services has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500. Comparatively, BioScrip has a beta of 0.28, meaning that its share price is 72% less volatile than the S&P 500.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
AMN Healthcare Services $1.95 billion 0.97 $236.01 million $2.37 16.56
BioScrip $900.58 million 0.38 $25.07 million ($0.68) -3.93

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

Summary

AMN Healthcare Services beats BioScrip on 10 of the 12 factors compared between the two stocks.

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.

About BioScrip

BioScrip, Inc. is engaged in providing infusion solutions. The Company partners with physicians, hospital systems, skilled nursing facilities, healthcare payors and pharmaceutical manufacturers to provide patients access to post-acute care services. The Company operates through Infusion Services segment. The Company operates through approximately 70 service locations in over 30 states. The Company offers home infusion services to provide clinical management services and the delivery of prescription medications. The Company provides services in coordination with, and under the direction of, the patient’s physician. The Company’s multidisciplinary team of clinicians, including pharmacists, nurses, dietitians and respiratory therapists, work with the physician to develop a plan of care suited to the patient’s specific needs. Its platform provides service capabilities to deliver clinical management services that offer patients a community-based and home-based care environment.

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