INGM vs. AMPL: Which Stock Is the Better Value Option?

Investors with an interest in Technology Services stocks have likely encountered both Ingram Micro (INGM) and Amplitude, Inc. (AMPL). But which of these two stocks presents investors with the better value opportunity right now? 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 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, Ingram Micro is sporting a Zacks Rank of #2 (Buy), while Amplitude, Inc. has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that INGM has an improving earnings outlook. However, value investors will care about much more than just this.

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.

INGM currently has a forward P/E ratio of 8.38, while AMPL has a forward P/E of 199.29. We also note that INGM has a PEG ratio of 0.73. 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 4.51.

Another notable valuation metric for INGM is its P/B ratio of 1.54. 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 11.07.

Based on these metrics and many more, INGM holds a Value grade of A, while AMPL has a Value grade of D.

INGM has seen stronger estimate revision activity and sports more attractive valuation metrics than AMPL, so it seems like value investors will conclude that INGM is the superior option right now.

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This article originally published on Zacks Investment Research (zacks.com).

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