Investors interested in Technology Services stocks are likely familiar with Skillsoft Corp. (SKIL) and Amplitude, Inc. (AMPL). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 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.
Right now, Skillsoft Corp. is sporting a Zacks Rank of #1 (Strong Buy), while Amplitude, Inc. has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that SKIL likely has seen a stronger improvement to its earnings outlook than AMPL has recently. But this is just one piece of the puzzle 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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
SKIL currently has a forward P/E ratio of 3.77, while AMPL has a forward P/E of 157.03. We also note that SKIL has a PEG ratio of 0.38. 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 4.06.
Another notable valuation metric for SKIL is its P/B ratio of 2.65. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, AMPL has a P/B of 3.55.
These metrics, and several others, help SKIL earn a Value grade of A, while AMPL has been given a Value grade of F.
SKIL sticks out from AMPL in both our Zacks Rank and Style Scores models, so value investors will likely feel that SKIL is the better option right now.
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Skillsoft Corp. (SKIL): Free Stock Analysis Report Amplitude, Inc. (AMPL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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