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QFIN or AMPL: Which Is the Better Value Stock Right Now?
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Investors interested in Technology Services stocks are likely familiar with Qifu Technology, Inc. (QFIN - Free Report) and Amplitude, Inc. (AMPL - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Qifu Technology, Inc. has a Zacks Rank of #1 (Strong Buy), while Amplitude, Inc. has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that QFIN has an improving earnings outlook. 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
QFIN currently has a forward P/E ratio of 4.58, while AMPL has a forward P/E of 126.71. We also note that QFIN has a PEG ratio of 0.46. 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 4.13.
Another notable valuation metric for QFIN is its P/B ratio of 1. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, AMPL has a P/B of 4.23.
Based on these metrics and many more, QFIN holds a Value grade of A, while AMPL has a Value grade of D.
QFIN stands above AMPL thanks to its solid earnings outlook, and based on these valuation figures, we also feel that QFIN is the superior value option right now.
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QFIN or AMPL: Which Is the Better Value Stock Right Now?
Investors interested in Technology Services stocks are likely familiar with Qifu Technology, Inc. (QFIN - Free Report) and Amplitude, Inc. (AMPL - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Qifu Technology, Inc. has a Zacks Rank of #1 (Strong Buy), while Amplitude, Inc. has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that QFIN has an improving earnings outlook. 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
QFIN currently has a forward P/E ratio of 4.58, while AMPL has a forward P/E of 126.71. We also note that QFIN has a PEG ratio of 0.46. 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 4.13.
Another notable valuation metric for QFIN is its P/B ratio of 1. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, AMPL has a P/B of 4.23.
Based on these metrics and many more, QFIN holds a Value grade of A, while AMPL has a Value grade of D.
QFIN stands above AMPL thanks to its solid earnings outlook, and based on these valuation figures, we also feel that QFIN is the superior value option right now.