Reviewing AMN Healthcare Services (NYSE:AMN) and Progyny (NASDAQ:PGNY)

AMN Healthcare Services (NYSE:AMN) and Progyny (NASDAQ:PGNY) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, analyst recommendations, risk, valuation, dividends and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations for AMN Healthcare Services and Progyny, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AMN Healthcare Services	2	2	4	1	2.44
Progyny	0	3	9	1	2.85

AMN Healthcare Services currently has a consensus target price of $25.29, indicating a potential downside of 11.54%. Progyny has a consensus target price of $28.55, indicating a potential upside of 22.78%. Given Progyny’s stronger consensus rating and higher probable upside, analysts clearly believe Progyny is more favorable than AMN Healthcare Services.

Profitability

This table compares AMN Healthcare Services and Progyny’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%
Progyny	5.23%	13.34%	9.03%

Risk & Volatility

AMN Healthcare Services has a beta of 0.3, meaning that its share price is 70% less volatile than the S&P 500. Comparatively, Progyny has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500.

Insider & Institutional Ownership

99.2% of AMN Healthcare Services shares are owned by institutional investors. Comparatively, 94.9% of Progyny shares are owned by institutional investors. 1.1% of AMN Healthcare Services shares are owned by company insiders. Comparatively, 9.9% of Progyny shares are owned by company 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.

Earnings & Valuation

This table compares AMN Healthcare Services and Progyny”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AMN Healthcare Services	$2.73 billion	0.41	-$95.70 million	($0.87)	-32.85
Progyny	$1.29 billion	1.41	$58.52 million	$0.77	30.19

Progyny has lower revenue, but higher earnings than AMN Healthcare Services. AMN Healthcare Services is trading at a lower price-to-earnings ratio than Progyny, indicating that it is currently the more affordable of the two stocks.

Summary

Progyny 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 Progyny

Progyny, Inc., a benefits management company, specializes in fertility and family building benefits solutions in the United States. Its fertility benefits solution includes differentiated benefits plan design, personalized concierge-style member support services, and selective network of fertility specialists. The company also offers Progyny Rx, an integrated pharmacy benefits solution that provides its members with access to the medications needed during their treatment. In addition, it provides assistance service programs where various services can be offered through a reimbursement program, including adoption, surrogacy, doula, and travel reimbursement when travel is required to receive medical services. The company was formerly known as Auxogyn, Inc. and changed its name to Progyny, Inc. in 2015. Progyny, Inc. was incorporated in 2008 and is headquartered in New York, New York.