HCSG vs AMSF

For growth investors, Healthcare Services Group, Inc.

(HCSG) is the stronger pick with 7. 1% revenue growth year-over-year, versus 2. 6% for AMERISAFE, Inc. (AMSF). AMERISAFE, Inc. (AMSF) offers the better valuation at 12. 0x trailing P/E (14. 1x forward), making it the more compelling value choice. Analysts rate AMERISAFE, Inc. (AMSF) a "Buy" — based on 6 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, AMERISAFE, Inc.

(AMSF) is the cheapest at 12. 0x versus Healthcare Services Group, Inc. at 27. 2x. On forward P/E, AMERISAFE, Inc. is actually cheaper at 14. 1x.

Over the past 5 years, AMERISAFE, Inc.

(AMSF) delivered a total return of -20. 5%, compared to -21. 4% for Healthcare Services Group, Inc. (HCSG). Over 10 years, the gap is even starker: AMSF returned +33. 4% versus HCSG's -27. 0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), AMERISAFE, Inc.

(AMSF) is the lower-risk stock at 0. 23β versus Healthcare Services Group, Inc. 's 1. 12β — meaning HCSG is approximately 386% more volatile than AMSF relative to the S&P 500. On balance sheet safety, AMERISAFE, Inc. (AMSF) carries a lower debt/equity ratio of 0% versus 5% for Healthcare Services Group, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Healthcare Services Group, Inc.

(HCSG) is pulling ahead at 7. 1% versus 2. 6% for AMERISAFE, Inc. (AMSF). On earnings-per-share growth, the picture is similar: Healthcare Services Group, Inc. grew EPS 52. 8% year-over-year, compared to -14. 5% for AMERISAFE, Inc.. Over a 3-year CAGR, HCSG leads at 2. 8% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

AMERISAFE, Inc.

(AMSF) is the more profitable company, earning 14. 9% net margin versus 3. 2% for Healthcare Services Group, Inc. — meaning it keeps 14. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: AMSF leads at 18. 6% versus 2. 6% for HCSG. At the gross margin level — before operating expenses — AMSF leads at 46. 4%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, AMERISAFE, Inc.

(AMSF) trades at 14. 1x forward P/E versus 20. 6x for Healthcare Services Group, Inc. — 6. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AMSF: 50. 3% to $44. 50.

In this comparison, AMSF (8.

6% yield) pays a dividend. HCSG does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, AMERISAFE, Inc.

(AMSF) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 23), 8. 6% yield). Both have compounded well over 10 years (AMSF: +33. 4%, HCSG: -27. 0%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

These companies operate in different sectors (HCSG (Healthcare) and AMSF (Financial Services)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: HCSG is a small-cap quality compounder stock; AMSF is a small-cap deep-value stock. AMSF pays a dividend while HCSG does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.