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

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Investors looking for stocks in the Technology Services sector might want to consider either Smiths Group PLC (SMGZY - Free Report) or 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Right now, Smiths Group PLC is sporting a Zacks Rank of #2 (Buy), while Amplitude, Inc. has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that SMGZY likely has seen a stronger improvement to its earnings outlook than AMPL has recently. But this is only part of the picture for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

SMGZY currently has a forward P/E ratio of 15.52, while AMPL has a forward P/E of 127.35. We also note that SMGZY has a PEG ratio of 1.54. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. AMPL currently has a PEG ratio of 3.90.

Another notable valuation metric for SMGZY is its P/B ratio of 2.99. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, AMPL has a P/B of 3.65.

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

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


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