Comparing Exponent (NASDAQ:EXPO) and Apollo Medical (AMEH)

Exponent (NASDAQ:EXPO) and Apollo Medical (NASDAQ:AMEH) are both business services companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, profitability, institutional ownership, risk, analyst recommendations and earnings.

Profitability

This table compares Exponent and Apollo Medical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Exponent 19.53% 23.10% 15.75%
Apollo Medical 2.08% 6.00% 2.06%

Analyst Recommendations

This is a summary of recent ratings for Exponent and Apollo Medical, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Exponent 0 1 3 0 2.75
Apollo Medical 0 0 0 0 N/A

Exponent presently has a consensus target price of $60.00, suggesting a potential upside of 7.97%. Given Exponent’s higher probable upside, equities analysts clearly believe Exponent is more favorable than Apollo Medical.

Dividends

Exponent pays an annual dividend of $0.64 per share and has a dividend yield of 1.2%. Apollo Medical does not pay a dividend. Exponent pays out 51.2% of its earnings in the form of a dividend. Exponent has raised its dividend for 5 consecutive years.

Volatility and Risk

Exponent has a beta of 0.44, indicating that its share price is 56% less volatile than the S&P 500. Comparatively, Apollo Medical has a beta of -1.08, indicating that its share price is 208% less volatile than the S&P 500.

Earnings & Valuation

This table compares Exponent and Apollo Medical’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Exponent $379.52 million 7.60 $72.25 million $1.25 44.46
Apollo Medical $519.91 million 1.38 $10.84 million $0.29 68.90

Exponent has higher earnings, but lower revenue 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.

Institutional & Insider Ownership

89.9% of Exponent shares are owned by institutional investors. Comparatively, 6.8% of Apollo Medical shares are owned by institutional investors. 2.3% of Exponent shares are owned by insiders. Comparatively, 20.5% of Apollo Medical shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Exponent beats Apollo Medical on 12 of the 16 factors compared between the two stocks.

About Exponent

Exponent, Inc., together with its subsidiaries, operates as a science and engineering consulting company worldwide. Its services include analysis of product development, product recall, regulatory compliance, and the discovery of potential problems related to products, people, property, and impending litigation. The company operates in two segments, Engineering and Other Scientific, and Environmental and Health. The Engineering and Other Scientific segment provides services in the areas of biomechanics, biomedical engineering, buildings and structures, civil engineering, construction consulting, electrical engineering and computer science, human factors, industrial structures, materials and corrosion engineering, mechanical engineering, polymer science and materials chemistry, statistical and data sciences, thermal sciences, and vehicle analysis. The Environmental and Health segment offers services in the areas of chemical regulation and food safety, ecological and biological sciences, environmental and earth sciences, and health sciences. The company offers approximately 90 different technical disciplines to solve complicated issues facing industry and government. It serves clients in chemical, construction, consumer products, energy, food, beverage and nutrition, government, life sciences, insurance, manufacturing, technology, industrial equipment, transportation, and other sectors of the economy. The company was formerly known as The Failure Group, Inc. and changed its name to Exponent, Inc. in 1998. Exponent, Inc. was founded in 1967 and is headquartered in Menlo Park, California.

About Apollo Medical

Apollo Medical Holdings, Inc., an integrated health care delivery and management company, provides medical care services. The company offers care coordination services to principal constituents of the healthcare delivery system, including patients, families, primary care physicians, specialists, acute care hospitals, alternative sites of inpatient care, physician groups, and health plans. Its physician network consists of primary care physicians, specialist physicians, and hospitalists. The company serves the patients, primarily covered by private or public insurance, such as Medicare, Medicaid, and health maintenance organizations; and non-insured patients in California. Apollo Medical Holdings, Inc. is based in Alhambra, California.

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