Analyzing Amplitude (NASDAQ:AMPL) & SunCar Technology Group (NASDAQ:SDA)

SunCar Technology Group (NASDAQ:SDA) and Amplitude (NASDAQ:AMPL) are both small-cap business services companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, profitability, risk, institutional ownership and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for SunCar Technology Group and Amplitude, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SunCar Technology Group	1	0	2	0	2.33
Amplitude	1	3	7	2	2.77

SunCar Technology Group currently has a consensus target price of $4.75, suggesting a potential upside of 124.06%. Amplitude has a consensus target price of $14.40, suggesting a potential upside of 32.11%. Given SunCar Technology Group’s higher probable upside, equities research analysts plainly believe SunCar Technology Group is more favorable than Amplitude.

Insider and Institutional Ownership

0.3% of SunCar Technology Group shares are held by institutional investors. Comparatively, 73.2% of Amplitude shares are held by institutional investors. 22.2% of SunCar Technology Group shares are held by insiders. Comparatively, 23.8% of Amplitude shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares SunCar Technology Group and Amplitude”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SunCar Technology Group	$441.90 million	0.50	-$68.66 million	($0.07)	-30.29
Amplitude	$299.27 million	4.87	-$94.32 million	($0.80)	-13.63

SunCar Technology Group has higher revenue and earnings than Amplitude. SunCar Technology Group 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 SunCar Technology Group and Amplitude’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SunCar Technology Group	N/A	N/A	N/A
Amplitude	-31.36%	-36.27%	-22.90%

Risk & Volatility

SunCar Technology Group has a beta of 0.1, indicating that its stock price is 90% less volatile than the S&P 500. Comparatively, Amplitude has a beta of 1.49, indicating that its stock price is 49% more volatile than the S&P 500.

Summary

Amplitude beats SunCar Technology Group on 8 of the 15 factors compared between the two stocks.

About SunCar Technology Group

SunCar Technology Group Inc., through its subsidiaries, provides digitalized automotive after-sales service and online insurance intermediation services in the People's Republic of China. It operates through three segments: Insurance Intermediation Business; Automotive After-Sales Business; and Technology Business. The company offers customized after-sale services to banking, insurance companies, and other customer types; and auto mobile insurance comprising statutory automobile liability insurance and commercial automobile insurance. In addition, it provides auto insurance SaaS products and other technical services. The company is based in Shanghai, China.

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.