Yahoo Finance COHR vs. AMPL: Which Stock Is the Better Value Option?
Investors with an interest in Technology Services stocks have likely encountered both Coherent (COHR) and Amplitude, Inc. (AMPL). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Coherent and Amplitude, Inc. are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. Investors should feel comfortable knowing that COHR 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 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.
COHR currently has a forward P/E ratio of 32.96, while AMPL has a forward P/E of 111.22. We also note that COHR has a PEG ratio of 2.92. 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 3.62.
Another notable valuation metric for COHR is its P/B ratio of 1.43. 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 3.80.
These metrics, and several others, help COHR earn a Value grade of B, while AMPL has been given a Value grade of F.
COHR has seen stronger estimate revision activity and sports more attractive valuation metrics than AMPL, so it seems like value investors will conclude that COHR is the superior option right now.
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Coherent Corp. (COHR) : Free Stock Analysis Report
Amplitude, Inc. (AMPL) : Free Stock Analysis Report
