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TTEC or BR: Which Is the Better Value Stock Right Now?

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Investors interested in Outsourcing stocks are likely familiar with TTEC Holdings (TTEC - Free Report) and Broadridge Financial Solutions (BR - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

TTEC Holdings and Broadridge Financial Solutions are both sporting a Zacks Rank of # 2 (Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one piece of the puzzle for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

TTEC currently has a forward P/E ratio of 17.89, while BR has a forward P/E of 25.82. We also note that TTEC has a PEG ratio of 2.24. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BR currently has a PEG ratio of 2.58.

Another notable valuation metric for TTEC is its P/B ratio of 4.68. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, BR has a P/B of 11.67.

These metrics, and several others, help TTEC earn a Value grade of A, while BR has been given a Value grade of D.

Both TTEC and BR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that TTEC is the superior value option right now.


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Broadridge Financial Solutions, Inc. (BR) - free report >>

TeleTech Holdings, Inc. (TTEC) - free report >>