Contrasting Amplitude (NASDAQ:AMPL) and DATATEC (OTCMKTS:DTTLY)

Amplitude (NASDAQ:AMPL) and DATATEC (OTCMKTS:DTTLY) are both small-cap business services companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, risk and valuation.

Profitability

This table compares Amplitude and DATATEC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Amplitude	-30.43%	-33.08%	-21.31%
DATATEC	N/A	N/A	N/A

Volatility and Risk

Amplitude has a beta of 1.54, indicating that its share price is 54% more volatile than the S&P 500. Comparatively, DATATEC has a beta of 0.29, indicating that its share price is 71% less volatile than the S&P 500.

Earnings and Valuation

This table compares Amplitude and DATATEC”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amplitude	$299.27 million	3.78	-$94.32 million	($0.76)	-14.57
DATATEC	$3.64 billion	0.22	$59.18 million	N/A	N/A

DATATEC has higher revenue and earnings than Amplitude.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Amplitude and DATATEC, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amplitude	0	4	7	1	2.75
DATATEC	0	0	0	0	0.00

Amplitude currently has a consensus target price of $13.80, suggesting a potential upside of 24.66%. Given Amplitude’s stronger consensus rating and higher possible upside, analysts clearly believe Amplitude is more favorable than DATATEC.

Institutional & Insider Ownership

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

Summary

Amplitude beats DATATEC on 8 of the 13 factors compared between the two stocks.

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.

About DATATEC

Datatec Limited, together with its subsidiaries, provides information and communication technology (ICT) solutions and services worldwide. It operates in four segments: Westcon International, Logicalis International, Logicalis Latin America, and Corporate and Management Consulting. The company distributes cyber security, network infrastructure, unified collaboration products, data centre solutions, and channel services; and offers financing/leasing solutions for ICT customers. It offers solutions through a network of service providers, systems integrators, and specialty resellers under the Westcon and Comstor brands. The company also provides digital services; and strategic, trusted advisory, modeling, and market intelligence services to the telecoms, media, and technology industries. Datatec Limited was founded in 1986 and is headquartered in Sandown, South Africa.