Apollo Medical (NASDAQ:AMEH) and Exponent (NASDAQ:EXPO) are both mid-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.
Profitability
This table compares Apollo Medical and Exponent's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Apollo Medical | 6.73% | 16.81% | 5.68% |
| Exponent | 21.94% | 26.17% | 16.65% |
Institutional & Insider Ownership
11.5% of Apollo Medical shares are held by institutional investors. Comparatively, 89.4% of Exponent shares are held by institutional investors. 12.3% of Apollo Medical shares are held by company insiders. Comparatively, 1.8% of Exponent shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Apollo Medical and Exponent's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Apollo Medical | $687.18 million | 7.32 | $37.87 million | $1.01 | 90.60 |
| Exponent | $399.90 million | 14.35 | $82.55 million | $1.55 | 71.05 |
Exponent has lower revenue, but higher earnings than Apollo Medical. Exponent is trading at a lower price-to-earnings ratio than Apollo Medical, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Apollo Medical has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500. Comparatively, Exponent has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and recommmendations for Apollo Medical and Exponent, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Apollo Medical | 0 | 0 | 1 | 0 | 3.00 |
| Exponent | 0 | 1 | 2 | 0 | 2.67 |
Apollo Medical currently has a consensus price target of $75.00, indicating a potential downside of 17.75%. Exponent has a consensus price target of $118.00, indicating a potential upside of 7.31%. Given Exponent's higher possible upside, analysts plainly believe Exponent is more favorable than Apollo Medical.
Summary
Exponent beats Apollo Medical on 9 of the 14 factors compared between the two stocks.
