Reviewing New Relic (NYSE:NEWR) and Amplitude (NASDAQ:AMPL)

New Relic (NYSE:NEWRGet Rating) and Amplitude (NASDAQ:AMPLGet Rating) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, dividends and risk.

Earnings & Valuation

This table compares New Relic and Amplitude’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
New Relic $888.89 million 5.80 -$250.40 million ($2.68) -27.95
Amplitude $238.07 million 6.42 -$93.38 million ($0.83) -16.10

Amplitude has lower revenue, but higher earnings than New Relic. New Relic is trading at a lower price-to-earnings ratio than Amplitude, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

New Relic has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, Amplitude has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500.

Insider & Institutional Ownership

83.6% of New Relic shares are owned by institutional investors. Comparatively, 40.9% of Amplitude shares are owned by institutional investors. 21.0% of New Relic shares are owned by company insiders. Comparatively, 45.4% of Amplitude shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
New Relic -20.08% -48.42% -11.62%
Amplitude -39.22% -26.06% -18.44%

Analyst Recommendations

This is a summary of recent ratings and price targets for New Relic and Amplitude, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
New Relic 0 8 4 1 2.46
Amplitude 0 4 5 0 2.56

New Relic currently has a consensus price target of $77.54, indicating a potential upside of 3.52%. Amplitude has a consensus price target of $18.75, indicating a potential upside of 40.34%. Given Amplitude’s stronger consensus rating and higher possible upside, analysts clearly believe Amplitude is more favorable than New Relic.

Summary

Amplitude beats New Relic on 10 of the 15 factors compared between the two stocks.

About New Relic

(Get Rating)

New Relic, Inc. engages in the provision of software solutions. It delivers an open and extensible cloud-based platform that enables organizations to collect, store and analyze massive amounts of data in real time to better operate applications and infrastructure. It offers solutions to e-commerce and retail, media, and public sector industries. The company was founded by Lewis Cirne in September 2007 and is headquartered in San Francisco, CA.

About Amplitude

(Get Rating)

Amplitude, Inc. provides a digital optimization system to analyze customer behavior within digital products in the United States and internationally. It offers Amplitude analytics for insights of customer behavior; Amplitude Recommend, a no-code personalization solution that helps to increase customer engagement by adapting digital products and campaigns to every user based on behavior; Amplitude Experiment, an integrated solution that enables teams to determine and deliver the product experiences for their customers through A/B tests and controlled feature releases; Amplitude Behavioral Graph, a proprietary database for deep, real-time interactive behavioral analysis, and behavior-driven personalization – instantly joining, analyzing, and correlating any customer actions to outcomes, such as engagement, growth, and loyalty; and data management, a real-time data layer for planning, integrating, and managing data sources to create a foundation with identity resolution, enterprise-level security, and privacy solutions. 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.

Receive News & Ratings for New Relic Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for New Relic and related companies with MarketBeat.com's FREE daily email newsletter.