Amplitude (NASDAQ:AMPL) vs. Loop Industries (NASDAQ:LOOP) Critical Review

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Amplitude and Loop Industries, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amplitude	1	1	10	0	2.75
Loop Industries	0	0	0	0	0.00

Amplitude presently has a consensus price target of $13.00, suggesting a potential upside of 65.61%. Given Amplitude’s stronger consensus rating and higher possible upside, research analysts plainly believe Amplitude is more favorable than Loop Industries.

Volatility and Risk

Amplitude has a beta of 1.51, suggesting that its stock price is 51% more volatile than the S&P 500. Comparatively, Loop Industries has a beta of 1.68, suggesting that its stock price is 68% more volatile than the S&P 500.

Valuation and Earnings

This table compares Amplitude and Loop Industries”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amplitude	$343.21 million	2.38	-$88.54 million	($0.67)	-11.72
Loop Industries	$10.89 million	5.86	-$15.06 million	($0.06)	-22.00

Loop Industries has lower revenue, but higher earnings than Amplitude. Loop Industries 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 Amplitude and Loop Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Amplitude	-25.80%	-32.33%	-19.76%
Loop Industries	N/A	N/A	-18.36%

Institutional & Insider Ownership

73.2% of Amplitude shares are held by institutional investors. Comparatively, 4.9% of Loop Industries shares are held by institutional investors. 4.8% of Amplitude shares are held by insiders. Comparatively, 45.9% of Loop Industries 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

Loop Industries beats Amplitude on 8 of the 14 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 Loop Industries

Loop Industries, Inc., a technology company, focuses on depolymerizing waste polyethylene terephthalate PET plastics and polyester fibers, including plastic bottles, packaging, carpets and textiles of any color, transparency and even ocean plastics that have been degraded by the sun and salt, to its base building blocks. Its polymerized monomers into virgin-quality PET resins for use in food-grade plastic packaging, such as plastic bottles for water and carbonated soft drinks, and containers for food and other consumer products; and polyester fibers, including textiles, clothing, and apparel. The company was incorporated in 2010 and is based in Terrebonne, Canada.