Reviewing Lucas GC (NASDAQ:LGCL) and Amplitude (NASDAQ:AMPL)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Amplitude	-25.11%	-34.98%	-20.46%
Lucas GC	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent recommendations for Amplitude and Lucas GC, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amplitude	1	1	9	0	2.73
Lucas GC	1	0	0	0	1.00

Amplitude currently has a consensus price target of $12.44, indicating a potential upside of 85.74%. Given Amplitude’s stronger consensus rating and higher probable upside, equities analysts clearly believe Amplitude is more favorable than Lucas GC.

Insider and Institutional Ownership

73.2% of Amplitude shares are owned by institutional investors. 21.6% of Amplitude shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Amplitude and Lucas GC”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amplitude	$343.21 million	2.03	-$88.54 million	($0.67)	-10.00
Lucas GC	$149.04 million	0.53	$1.40 million	N/A	N/A

Lucas GC has lower revenue, but higher earnings than Amplitude.

Risk & Volatility

Amplitude has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500. Comparatively, Lucas GC has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500.

Summary

Amplitude beats Lucas GC on 8 of the 12 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 Lucas GC

Lucas GC Limited, through its subsidiaries, provides online agent-centric human capital management services based on platform-as-a-service (PaaS) in the People’s Republic of China. Its Star Career and Columbus platforms enables registered users to receive customized job recommendations and work as talent scouts to source suitable candidates for its corporate customers through their social network, as well as receive trainings and other value-added services. The company’s platform provides permanent and flexible employment recruitment services; outsourcing services primarily for technology-related projects to design, develop, and deliver the projects within budget and on time with acceptable quality; information technology services to generate sales leads for its corporate customers; and training services comprising career-related certification programs. In addition, it engages in the media and entertainment business, as well as provides management consulting services. Lucas GC Limited was founded in 2011 and is based in Beijing, China. Lucas GC Limited operates as a subsidiary of HTL Lucky Holding Limited.