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JAMF vs. AMPL: Which Stock Should Value Investors Buy Now?

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Investors interested in stocks from the Technology Services sector have probably already heard of Jamf Holding (JAMF - 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.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Jamf Holding and Amplitude, Inc. are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. Investors should feel comfortable knowing that JAMF likely has seen a stronger improvement to its earnings outlook than AMPL has recently. However, value investors will care about much more than just this.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.

JAMF currently has a forward P/E ratio of 13.11, while AMPL has a forward P/E of 101.52. We also note that JAMF has a PEG ratio of 0.76. 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 2.45.

Another notable valuation metric for JAMF is its P/B ratio of 2.2. 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 5.8.

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

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


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