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Amplitude (NASDAQ:AMPL) Versus GitLab (NASDAQ:GTLB) Critical Review

Financial News Live ·  Feb 4, 2023 22:21

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

Volatility and Risk

Amplitude has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500. Comparatively, GitLab has a beta of -0.2, indicating that its stock price is 120% less volatile than the S&P 500.

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Earnings and Valuation

This table compares Amplitude and GitLab's gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Amplitude $167.26 million 10.16 -$74.98 million ($0.82) -18.32
GitLab $252.65 million 30.93 -$155.14 million ($1.23) -42.44
Amplitude has higher earnings, but lower revenue than GitLab. GitLab is trading at a lower price-to-earnings ratio than Amplitude, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Amplitude and GitLab's net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Amplitude -41.05% -25.09% -18.08%
GitLab -47.30% -23.06% -17.00%

Analyst Recommendations

This is a breakdown of current recommendations for Amplitude and GitLab, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Amplitude 0 4 5 0 2.56
GitLab 0 1 12 0 2.92

Amplitude currently has a consensus target price of $17.88, indicating a potential upside of 19.01%. GitLab has a consensus target price of $70.07, indicating a potential upside of 34.24%. Given GitLab's stronger consensus rating and higher possible upside, analysts plainly believe GitLab is more favorable than Amplitude.

Institutional and Insider Ownership

40.9% of Amplitude shares are held by institutional investors. Comparatively, 49.0% of GitLab shares are held by institutional investors. 45.4% of Amplitude shares are held by company insiders. Comparatively, 0.2% of GitLab shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

GitLab beats Amplitude on 8 of the 14 factors compared between the two stocks.

About Amplitude

(Get Rating)

Amplitude, Inc. provides a digital optimization system to analyze customer behavior within digital products in the United States and internationally. It offers Amplitude analytics for insights of customer behavior; Amplitude Recommend, a no-code personalization solution that helps to increase customer engagement by adapting digital products and campaigns to every user based on behavior; Amplitude Experiment, an integrated solution that enables teams to determine and deliver the product experiences for their customers through A/B tests and controlled feature releases; Amplitude Behavioral Graph, a proprietary database for deep, real-time interactive behavioral analysis, and behavior-driven personalization – instantly joining, analyzing, and correlating any customer actions to outcomes, such as engagement, growth, and loyalty; and data management, a real-time data layer for planning, integrating, and managing data sources to create a foundation with identity resolution, enterprise-level security, and privacy solutions. 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 GitLab

(Get Rating)

GitLab Inc., through its subsidiaries, develops software for the software development lifecycle in the United States, Europe, and the Asia Pacific. The company offers GitLab, a DevOps platform, which is a single application that leads to faster cycle time and allows visibility throughout and control over various stages of the DevOps lifecycle. It helps organizations to plan, build, secure, and deploy software to drive business outcomes. The company also provides related training and professional services. The company was formerly known as GitLab B.V. and changed its name to GitLab Inc. in July 2015. The company was founded in 2011 and is headquartered in San Francisco, California.

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Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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