Critical Review: Option Care Health (NASDAQ:OPCH) and Amplifon (OTCMKTS:AMFPF)

by · The Markets Daily

Amplifon (OTCMKTS:AMFPFGet Free Report) and Option Care Health (NASDAQ:OPCHGet Free Report) are both mid-cap healthcare companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.

Profitability

This table compares Amplifon and Option Care Health’s net margins, return on equity and return on assets.

Net MarginsReturn on EquityReturn on Assets
Amplifon3.01%15.03%4.29%
Option Care Health3.68%18.74%7.25%

Insider & Institutional Ownership

98.0% of Option Care Health shares are held by institutional investors. 1.7% of Option Care Health shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Amplifon and Option Care Health, as provided by MarketBeat.com.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
Amplifon02302.60
Option Care Health07702.50

Option Care Health has a consensus target price of $29.92, indicating a potential upside of 24.68%. Given Option Care Health’s higher probable upside, analysts clearly believe Option Care Health is more favorable than Amplifon.

Risk and Volatility

Amplifon has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500. Comparatively, Option Care Health has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500.

Earnings and Valuation

This table compares Amplifon and Option Care Health”s gross revenue, earnings per share (EPS) and valuation.

Gross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
Amplifon$2.71 billion0.91$103.33 million$0.3730.30
Option Care Health$5.65 billion0.64$207.59 million$1.3318.05

Option Care Health has higher revenue and earnings than Amplifon. Option Care Health is trading at a lower price-to-earnings ratio than Amplifon, indicating that it is currently the more affordable of the two stocks.

Summary

Option Care Health beats Amplifon on 10 of the 14 factors compared between the two stocks.

About Amplifon

(Get Free Report)

Amplifon S.p.A. engages in the distribution of hearing solutions and the fitting of customized products that help people rediscover various emotions of sound in Europe, the Middle East, Africa, the Americas, and the Asia Pacific. The company offers Ampli-easy, Ampli-connect, Ampli-energy, and Ampli-mini hearing devices. It also operates Ampli-care, a platform to deliver audiological care experience; and Amplifon App to manage the device functions in real-time directly from smartphone. Amplifon S.p.A. was founded in 1950 and is headquartered in Milan, Italy. Amplifon S.p.A.

About Option Care Health

(Get Free Report)

Option Care Health, Inc. offers home and alternate site infusion services in the United States. The company provides anti-infective therapies; home infusion services to treat heart failures; home parenteral nutrition and enteral nutrition support services for numerous acute and chronic conditions, such as stroke, cancer, and gastrointestinal diseases; immunoglobulin infusion therapies for the treatment of immune deficiencies; and treatments for chronic inflammatory disorders, including crohn’s disease, plaque psoriasis, psoriatic arthritis, rheumatoid arthritis, ulcerative colitis, and other chronic inflammatory disorders. It also offers treatments to manage the progression of neurological disorders, such as multiple sclerosis, duchenne muscular dystrophy, and other neurological disorder; infusion therapies for bleeding disorders, such as hemophilia and von Willebrand diseases; therapies for women with high-risk pregnancies; and other infusion therapies to treat various conditions, including pain management, chemotherapy, and respiratory medications, as well as nursing services. The company markets its services through patient referrals, including physicians, hospital discharge planners, hospital personnel, health maintenance organizations, and preferred provider organizations. Option Care Health, Inc. is headquartered in Bannockburn, Illinois.