Amplitude (NASDAQ:AMPL) & SailPoint (NASDAQ:SAIL) Critical Comparison

Amplitude (NASDAQ:AMPL) and SailPoint (NASDAQ:SAIL) are both technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, dividends, risk, valuation, earnings and institutional ownership.

Volatility and Risk

Amplitude has a beta of 1.49, suggesting that its share price is 49% more volatile than the S&P 500. Comparatively, SailPoint has a beta of 2.15, suggesting that its share price is 115% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Amplitude	-26.59%	-42.62%	-22.69%
SailPoint	-16.92%	2.44%	2.21%

Earnings & Valuation

This table compares Amplitude and SailPoint”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amplitude	$343.21 million	4.62	-$88.54 million	($0.75)	-20.89
SailPoint	$1.07 billion	11.07	-$270.05 million	($0.34)	-61.09

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Amplitude and SailPoint, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amplitude	1	2	7	1	2.73
SailPoint	1	6	20	0	2.70

Amplitude currently has a consensus price target of $13.05, indicating a potential downside of 16.72%. SailPoint has a consensus price target of $22.20, indicating a potential upside of 6.86%. Given SailPoint’s higher probable upside, analysts clearly believe SailPoint is more favorable than Amplitude.

Insider and Institutional Ownership

73.2% of Amplitude shares are owned by institutional investors. 21.6% of Amplitude shares are owned by company insiders. Comparatively, 1.7% of SailPoint shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

SailPoint beats Amplitude on 9 of the 15 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 SailPoint

SailPoint, Inc. delivers solutions to enable comprehensive identity security for the enterprise. Its solutions enable organizations to establish, control, and automate policies that help them define and maintain a robust security posture and achieve regulatory compliance. The company was founded by Mark David McClain in 2005 and is headquartered in Austin, TX.