Analyzing Amplitude (NASDAQ:AMPL) and AvePoint (NASDAQ:AVPT)

Amplitude (NASDAQ:AMPL) and AvePoint (NASDAQ:AVPT) are both business services companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.

Analyst Ratings

This is a summary of current ratings for Amplitude and AvePoint, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amplitude	1	6	0	0	1.86
AvePoint	0	2	3	0	2.60

Amplitude presently has a consensus price target of $11.00, indicating a potential upside of 1.76%. AvePoint has a consensus price target of $13.20, indicating a potential downside of 28.26%. Given Amplitude’s higher probable upside, equities analysts plainly believe Amplitude is more favorable than AvePoint.

Insider & Institutional Ownership

73.2% of Amplitude shares are held by institutional investors. Comparatively, 44.5% of AvePoint shares are held by institutional investors. 4.8% of Amplitude shares are held by insiders. Comparatively, 27.8% of AvePoint shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Amplitude has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500. Comparatively, AvePoint has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500.

Profitability

This table compares Amplitude and AvePoint’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Amplitude	-27.44%	-27.40%	-18.05%
AvePoint	-2.36%	-3.16%	-1.55%

Earnings and Valuation

This table compares Amplitude and AvePoint”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amplitude	$276.28 million	3.70	-$90.36 million	($0.67)	-16.13
AvePoint	$271.83 million	12.64	-$21.50 million	($0.05)	-367.93

AvePoint has lower revenue, but higher earnings than Amplitude. AvePoint is trading at a lower price-to-earnings ratio than Amplitude, indicating that it is currently the more affordable of the two stocks.

Summary

AvePoint beats Amplitude on 9 of the 14 factors compared between the two stocks.

About Amplitude

Amplitude, Inc., together with its subsidiaries, provides a digital analytics platform that analyzes customer behavior in the United States and internationally. It offers Amplitude Analytics, which provides real-time product data and reconstructed user visits; Amplitude Experiment, a solution that allows teams to test new capabilities and safely roll out new features; Amplitude CDP, an insight-driven solution that encompasses the data infrastructure, audience management, and data streaming capabilities; and Amplitude Session Replay used by product, marketing, and data teams to understand user behavior, diagnose product issues, and improve product outcomes. The company also provides customer support services related to initial implementation setup, ongoing support, and application training. It delivers its application over the Internet as a subscription service using a software-as-a-service model. The company was formerly known as Sonalight, Inc. and changed its name to Amplitude, Inc. in December 2014. Amplitude, Inc. was incorporated in 2011 and is headquartered in San Francisco, California.

About AvePoint

AvePoint, Inc. provides cloud-native data management software platform in North America, Europe, Middle East, Africa, and Asia Pacific. It also offers software-as-a-service solutions and productivity applications. The company offers modularity and cloud services architecture to address critical challenges and the management of data to organizations that leverage third-party cloud vendors, including Microsoft, Salesforce, Google, AWS, Box, DropBox, and others; license and support; and maintenance services. AvePoint, Inc. was incorporated in 2001 and is headquartered in Jersey City, New Jersey.