Analyzing Brookdale Senior Living (NYSE:BKD) and AMN Healthcare Services (NYSE:AMN)
by Sarita Garza · The Markets DailyAMN Healthcare Services (NYSE:AMN – Get Free Report) and Brookdale Senior Living (NYSE:BKD – Get Free Report) are both healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, valuation and risk.
Valuation and Earnings
This table compares AMN Healthcare Services and Brookdale Senior Living”s gross 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 | 0.64 | -$95.70 million | $2.68 | 16.93 |
| Brookdale Senior Living | $3.19 billion | 0.78 | -$262.69 million | ($0.58) | -17.95 |
AMN Healthcare Services has higher earnings, but lower revenue than Brookdale Senior Living. Brookdale Senior Living 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.
Risk and Volatility
AMN Healthcare Services has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500. Comparatively, Brookdale Senior Living has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and price targets for AMN Healthcare Services and Brookdale Senior Living, 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 |
| Brookdale Senior Living | 1 | 0 | 5 | 2 | 3.00 |
AMN Healthcare Services presently has a consensus target price of $36.50, indicating a potential downside of 19.57%. Brookdale Senior Living has a consensus target price of $17.40, indicating a potential upside of 67.11%. Given Brookdale Senior Living’s stronger consensus rating and higher probable upside, analysts plainly believe Brookdale Senior Living is more favorable than AMN Healthcare Services.
Profitability
This table compares AMN Healthcare Services and Brookdale Senior Living’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AMN Healthcare Services | 3.06% | 19.92% | 5.93% |
| Brookdale Senior Living | -4.53% | -15,050.32% | -1.09% |
Institutional & Insider Ownership
99.2% of AMN Healthcare Services shares are held by institutional investors. 1.1% of AMN Healthcare Services shares are held by insiders. Comparatively, 0.7% of Brookdale Senior Living shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
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 Brookdale Senior Living
Brookdale Senior Living Inc. owns, manages, and operates senior living communities in the United States. It operates in three segments: Independent Living, Assisted Living and Memory Care, and Continuing Care Retirement Communities (CCRCs). The Independent Living segment owns or leases communities comprising independent and assisted living units in a single community that are primarily designed for middle to upper income seniors. The Assisted Living and Memory Care segment owns or leases communities consisting of freestanding, multi-story communities and freestanding, single-story communities, which offer housing and 24-hour assistance with activities of daily living for the Company’s residents. This segment also operates memory care communities for residents with Alzheimer’s and other dementias. The CCRCs segment owns or leases communities that provides various living arrangements, such as independent and assisted living, memory care, and skilled nursing; and services to accommodate various levels of physical ability and healthcare needs. It also manages communities on behalf of others. Brookdale Senior Living Inc. was incorporated in 2005 and is headquartered in Brentwood, Tennessee.