Solventum (NYSE:SOLV) versus AMN Healthcare Services (NYSE:AMN) Critical Review

Solventum (NYSE:SOLV) and AMN Healthcare Services (NYSE:AMN) are both medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, valuation and institutional ownership.

Valuation and Earnings

This table compares Solventum and AMN Healthcare Services”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Solventum	$8.26 billion	1.70	$1.56 billion	$8.16	9.92
AMN Healthcare Services	$2.73 billion	0.42	-$95.70 million	($0.87)	-33.87

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

Insider & Institutional Ownership

99.2% of AMN Healthcare Services shares are held by institutional investors. 0.2% of Solventum shares are held by insiders. Comparatively, 1.1% of AMN Healthcare Services shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Solventum and AMN Healthcare Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Solventum	17.33%	23.51%	7.63%
AMN Healthcare Services	-0.95%	18.01%	5.19%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Solventum and AMN Healthcare Services, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solventum	1	5	8	0	2.50
AMN Healthcare Services	2	3	4	0	2.22

Solventum presently has a consensus price target of $84.25, suggesting a potential upside of 4.07%. AMN Healthcare Services has a consensus price target of $25.29, suggesting a potential downside of 14.18%. Given Solventum’s stronger consensus rating and higher possible upside, equities analysts plainly believe Solventum is more favorable than AMN Healthcare Services.

Volatility and Risk

Solventum has a beta of 0.69, indicating that its share price is 31% less volatile than the S&P 500. Comparatively, AMN Healthcare Services has a beta of 0.44, indicating that its share price is 56% less volatile than the S&P 500.

Summary

Solventum beats AMN Healthcare Services on 12 of the 14 factors compared between the two stocks.

About Solventum

Solventum Corporation, a healthcare company, engages in the developing, manufacturing, and commercializing a portfolio of solutions to address critical customer and patient needs. It operates through four segments: Medsurg, Dental Solutions, Health Information Systems, and Purification and Filtration. The Medsurg segment is a provider of solutions including advanced wound care, I.V. site management, sterilization assurance, temperature management, surgical supplies, stethoscopes, and medical electrodes. The Dental Solutions segment provides a comprehensive suite of dental and orthodontic products including brackets, aligners, restorative cements, and bonding agents. The Health Information Systems provides software solutions including computer-assisted, physician documentation, direct-to-bill and coding automation, classification methodologies, speech, recognition, and data visualization platforms. The Purification and Filtration segment provides purification and filtration technologies including filters, purifiers, cartridges, and membranes. The company was incorporated in 2023 and is based in Saint Paul, Minnesota.

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.