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FUTU vs. AMPL: Which Stock Is the Better Value Option?

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Investors with an interest in Technology Services stocks have likely encountered both Futu Holdings Limited Sponsored ADR (FUTU - Free Report) and Amplitude, Inc. (AMPL - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Futu Holdings Limited Sponsored ADR has a Zacks Rank of #1 (Strong Buy), while Amplitude, Inc. has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that FUTU is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

FUTU currently has a forward P/E ratio of 13.10, while AMPL has a forward P/E of 122.37. We also note that FUTU has a PEG ratio of 0.83. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AMPL currently has a PEG ratio of 3.75.

Another notable valuation metric for FUTU is its P/B ratio of 2.93. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, AMPL has a P/B of 3.69.

These are just a few of the metrics contributing to FUTU's Value grade of B and AMPL's Value grade of D.

FUTU stands above AMPL thanks to its solid earnings outlook, and based on these valuation figures, we also feel that FUTU is the superior value option right now.


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