Head-To-Head Review: AMN Healthcare Services (NYSE:AMN) and Labcorp (NYSE:LH)
by Tristan Rich · The Markets DailyAMN Healthcare Services (NYSE:AMN – Get Free Report) and Labcorp (NYSE:LH – Get Free Report) are both medical companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, earnings, risk, dividends, profitability and analyst recommendations.
Institutional and Insider Ownership
99.2% of AMN Healthcare Services shares are held by institutional investors. Comparatively, 95.9% of Labcorp shares are held by institutional investors. 1.1% of AMN Healthcare Services shares are held by insiders. Comparatively, 0.8% of Labcorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of current ratings for AMN Healthcare Services and Labcorp, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AMN Healthcare Services | 2 | 3 | 4 | 0 | 2.22 |
| Labcorp | 0 | 3 | 8 | 0 | 2.73 |
AMN Healthcare Services currently has a consensus target price of $25.29, suggesting a potential downside of 18.47%. Labcorp has a consensus target price of $308.00, suggesting a potential upside of 20.33%. Given Labcorp’s stronger consensus rating and higher possible upside, analysts clearly believe Labcorp is more favorable than AMN Healthcare Services.
Profitability
This table compares AMN Healthcare Services and Labcorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AMN Healthcare Services | -0.95% | 18.01% | 5.19% |
| Labcorp | 6.66% | 16.29% | 7.62% |
Volatility and Risk
AMN Healthcare Services has a beta of 0.44, meaning that its share price is 56% less volatile than the S&P 500. Comparatively, Labcorp has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500.
Valuation & Earnings
This table compares AMN Healthcare Services and Labcorp”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 | $2.73 billion | 0.44 | -$95.70 million | ($0.87) | -35.65 |
| Labcorp | $13.95 billion | 1.50 | $876.50 million | $11.29 | 22.67 |
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.
Summary
Labcorp beats AMN Healthcare Services on 11 of the 14 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 Labcorp
Labcorp Holdings, Inc. engages in providing medical testing services. The company was founded on April 16, 2024 and is headquartered in Burlington, NC.