The Pennant Group (NASDAQ:PNTG – Get Free Report) and AMN Healthcare Services (NYSE:AMN – Get Free Report) are both small-cap healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.
Institutional and Insider Ownership
85.9% of The Pennant Group shares are owned by institutional investors. Comparatively, 99.2% of AMN Healthcare Services shares are owned by institutional investors. 6.9% of The Pennant Group 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 endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares The Pennant Group and AMN Healthcare Services’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| The Pennant Group | 2.93% | 10.33% | 4.20% |
| AMN Healthcare Services | 3.06% | 19.92% | 5.93% |
Risk and Volatility
Analyst Recommendations
This is a summary of recent recommendations and price targets for The Pennant Group and AMN Healthcare Services, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| The Pennant Group | 0 | 1 | 7 | 0 | 2.88 |
| AMN Healthcare Services | 0 | 4 | 4 | 0 | 2.50 |
The Pennant Group presently has a consensus price target of $41.60, indicating a potential upside of 6.78%. AMN Healthcare Services has a consensus price target of $36.00, indicating a potential upside of 5.42%. Given The Pennant Group’s stronger consensus rating and higher possible upside, research analysts plainly believe The Pennant Group is more favorable than AMN Healthcare Services.
Valuation and Earnings
This table compares The Pennant Group and AMN Healthcare Services”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| The Pennant Group | $1.10 billion | 1.24 | $29.58 million | $0.90 | 43.29 |
| AMN Healthcare Services | $3.43 billion | 0.39 | -$95.70 million | $2.68 | 12.74 |
The Pennant Group has higher earnings, but lower revenue than AMN Healthcare Services. AMN Healthcare Services is trading at a lower price-to-earnings ratio than The Pennant Group, indicating that it is currently the more affordable of the two stocks.
Summary
The Pennant Group beats AMN Healthcare Services on 8 of the 14 factors compared between the two stocks.
About The Pennant Group
The Pennant Group, Inc. provides healthcare services in the United States. It operates in two segments, Home Health and Hospice Services, and Senior Living Services. The company offers home health services, including clinical services, such as nursing, speech, occupational and physical therapy, medical social work, and home health aide services; and hospice services comprising clinical care, education, and counseling services for the physical, spiritual, and psychosocial needs of terminally ill patients and their families. It also provides senior living services, such as residential accommodations, activities, meals, housekeeping, and assistance in the activities of daily living to seniors who are independent or who require some support. The company operates home health, hospice, and home care agencies, as well as senior living communities throughout Arizona, California, Colorado, Idaho, Montana, Nevada, Oklahoma, Oregon, Texas, Utah, Washington, Wisconsin, and Wyoming. The Pennant Group, Inc. was incorporated in 2019 and is headquartered in Eagle, Idaho.
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.
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