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FUTU or AMPL: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Technology Services sector have probably already heard of Futu Holdings Limited Sponsored ADR (FUTU - Free Report) and Amplitude, Inc. (AMPL - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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.

Futu Holdings Limited Sponsored ADR has a Zacks Rank of #2 (Buy), while Amplitude, Inc. has a Zacks Rank of #4 (Sell) right now. This means that FUTU's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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 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 15.61, while AMPL has a forward P/E of 147.95. We also note that FUTU has a PEG ratio of 0.86. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AMPL currently has a PEG ratio of 3.83.

Another notable valuation metric for FUTU is its P/B ratio of 3.97. 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 4.08.

These metrics, and several others, help FUTU earn a Value grade of A, while AMPL has been given a Value grade of F.

FUTU sticks out from AMPL in both our Zacks Rank and Style Scores models, so value investors will likely feel that FUTU is the better option right now.


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