Unity Software (NYSE:U – Get Free Report) and Amplitude (NASDAQ:AMPL – Get Free Report) are both technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.
Institutional and Insider Ownership
73.5% of Unity Software shares are held by institutional investors. Comparatively, 73.2% of Amplitude shares are held by institutional investors. 0.8% of Unity Software shares are held by insiders. Comparatively, 21.6% of Amplitude shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of current ratings and recommmendations for Unity Software and Amplitude, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Unity Software | 1 | 3 | 18 | 1 | 2.83 |
| Amplitude | 1 | 2 | 7 | 1 | 2.73 |
Unity Software presently has a consensus target price of $48.01, suggesting a potential upside of 18.13%. Amplitude has a consensus target price of $13.90, suggesting a potential downside of 8.43%. Given Unity Software’s stronger consensus rating and higher probable upside, research analysts plainly believe Unity Software is more favorable than Amplitude.
Earnings & Valuation
This table compares Unity Software and Amplitude”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Unity Software | $1.85 billion | 9.67 | -$402.77 million | ($1.36) | -29.88 |
| Amplitude | $343.21 million | 4.48 | -$88.54 million | ($0.75) | -20.24 |
Amplitude has lower revenue, but higher earnings than Unity Software. Unity Software is trading at a lower price-to-earnings ratio than Amplitude, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Unity Software has a beta of 2.11, suggesting that its stock price is 111% more volatile than the S&P 500. Comparatively, Amplitude has a beta of 1.49, suggesting that its stock price is 49% more volatile than the S&P 500.
Profitability
This table compares Unity Software and Amplitude’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Unity Software | -28.97% | 4.64% | 2.16% |
| Amplitude | -26.59% | -42.62% | -22.69% |
Summary
Unity Software beats Amplitude on 9 of the 14 factors compared between the two stocks.
About Unity Software
Unity Software Inc. operates a real-time 3D development platform. Its platform provides software solutions to create, run, and monetize interactive, real-time 2D and 3D content for mobile phones, tablets, PCs, consoles, and augmented and virtual reality devices. The company offers its solutions directly through its online store and field sales operations in North America, Denmark, Finland, the United Kingdom, Germany, Japan, China, Singapore, and South Korea, as well as indirectly through independent distributors and resellers worldwide. The company was founded in 2004 and is headquartered in San Francisco, California.
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.
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