SPXC or AMPL: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Technology Services sector might want to consider either SPX Technologies (SPXC) or Amplitude, Inc. (AMPL). 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
SPX Technologies and Amplitude, Inc. are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that SPXC is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
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 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.
SPXC currently has a forward P/E ratio of 21.97, while AMPL has a forward P/E of 147.20. We also note that SPXC has a PEG ratio of 1.22. 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 4.79.
Another notable valuation metric for SPXC is its P/B ratio of 4.15. 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 4.88.
Based on these metrics and many more, SPXC holds a Value grade of B, while AMPL has a Value grade of F.
SPXC stands above AMPL thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SPXC is the superior value option right now.
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SPX Technologies, Inc. (SPXC) : Free Stock Analysis Report
Amplitude, Inc. (AMPL) : Free Stock Analysis Report
