Analyzing AMN Healthcare Services (NYSE:AMN) & InnovAge (OTCMKTS:INNV)

AMN Healthcare Services (NYSE:AMN) and InnovAge (OTCMKTS:INNV) are both medical companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, valuation and dividends.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AMN Healthcare Services	0	4	4	0	2.50
InnovAge	0	0	0	0	N/A

AMN Healthcare Services currently has a consensus price target of $87.25, suggesting a potential upside of 49.68%. InnovAge has a consensus price target of $7.00, suggesting a potential upside of 54.87%. Given InnovAge’s higher possible upside, analysts clearly believe InnovAge is more favorable than AMN Healthcare Services.

Volatility and Risk

AMN Healthcare Services has a beta of 0.22, indicating that its stock price is 78% less volatile than the S&P 500. Comparatively, InnovAge has a beta of 0.16, indicating that its stock price is 84% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AMN Healthcare Services	5.56%	38.29%	11.62%
InnovAge	-6.17%	-13.04%	-7.48%

Insider & Institutional Ownership

99.2% of AMN Healthcare Services shares are held by institutional investors. Comparatively, 12.3% of InnovAge shares are held by institutional investors. 0.9% of AMN Healthcare Services shares are held by company insiders. Comparatively, 0.4% of InnovAge shares are held 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.

Valuation and Earnings

This table compares AMN Healthcare Services and InnovAge’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AMN Healthcare Services	$3.79 billion	0.58	$210.68 million	$5.29	11.02
InnovAge	$720.80 million	0.85	-$6.52 million	($0.25)	-18.08

AMN Healthcare Services has higher revenue and earnings than InnovAge. InnovAge 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 InnovAge on 11 of the 13 factors compared between the two stocks.

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.

About InnovAge

InnovAge Holding Corp. manages and provides a range of medical and ancillary services for seniors in need of care and support to live independently in their homes and communities. The company manages its business through Program of All-Inclusive Care for the Elderly (PACE) approach. It also offers in-home care services consisting of skilled, unskilled, and personal care; in-center services, such as primary care, physical therapy, occupational therapy, speech therapy, dental services, mental health and psychiatric services, meals, and activities; transportation to the PACE center and third-party medical appointments; and care management. The company serves participants in the United States; and operates PACE centers in Colorado, California, New Mexico, Pennsylvania, and Virginia. The company was formerly known as TCO Group Holdings, Inc. and changed its name to InnovAge Holding Corp. in January 2021. InnovAge Holding Corp. was founded in 2007 and is headquartered in Denver, Colorado.