Elevance Health (NYSE:ELV – Get Free Report) and AMN Healthcare Services (NYSE:AMN – Get Free Report) are both healthcare companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, risk, dividends, analyst recommendations, institutional ownership and earnings.
Profitability
This table compares Elevance Health and AMN Healthcare Services’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Elevance Health | 2.47% | 14.64% | 5.22% |
| AMN Healthcare Services | 3.06% | 19.92% | 5.93% |
Valuation and Earnings
This table compares Elevance Health and AMN Healthcare Services”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Elevance Health | $199.12 billion | 0.44 | $5.66 billion | $22.50 | 18.09 |
| AMN Healthcare Services | $2.73 billion | 0.48 | -$95.70 million | $2.68 | 12.61 |
Elevance Health has higher revenue and earnings than AMN Healthcare Services. AMN Healthcare Services is trading at a lower price-to-earnings ratio than Elevance Health, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Elevance Health has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500. Comparatively, AMN Healthcare Services has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500.
Insider & Institutional Ownership
89.2% of Elevance Health shares are held by institutional investors. Comparatively, 99.2% of AMN Healthcare Services shares are held by institutional investors. 0.3% of Elevance Health shares are held by insiders. Comparatively, 1.1% of AMN Healthcare Services shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Elevance Health and AMN Healthcare Services, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Elevance Health | 0 | 8 | 15 | 0 | 2.65 |
| AMN Healthcare Services | 2 | 3 | 4 | 0 | 2.22 |
Elevance Health presently has a consensus target price of $440.90, suggesting a potential upside of 8.32%. AMN Healthcare Services has a consensus target price of $31.43, suggesting a potential downside of 7.02%. Given Elevance Health’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Elevance Health is more favorable than AMN Healthcare Services.
Summary
Elevance Health beats AMN Healthcare Services on 8 of the 14 factors compared between the two stocks.
About Elevance Health
Elevance Health, Inc., together with its subsidiaries, operates as a health benefits company in the United States. The company operates through four segments: Health Benefits, CarelonRx, Carelon Services, and Corporate & Other. It offers a variety of health plans and services to program members; health products; an array of fee-based administrative managed care services; and specialty and other insurance products and services, such as stop loss, dental, vision, life, disability, and supplemental health insurance benefits. The company operates in the pharmacy services business; and markets and offers pharmacy services, including pharmacy benefit management, as well as home delivery and specialty pharmacies, claims adjudication, formulary management, pharmacy networks, rebate administration, a prescription drug database, and member services. In addition, it provides healthcare-related services and capabilities, including utilization management, behavioral health, integrated care delivery, palliative care, payment integrity services, subrogation services, and health and wellness programs, as well as services related to data management, information technology, and business operations. Further, the company is involved in the National Government Services business. The company provides its services under the Anthem Blue Cross and Blue Shield, Wellpoint, and Carelon brand names. The company was formerly known as Anthem, Inc. and changed its name to Elevance Health, Inc. in June 2022. Elevance Health, Inc. was incorporated in 2001 and is headquartered in Indianapolis, Indiana.
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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