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TTEC vs. DOCU: Which Stock Is the Better Value Option?

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Investors interested in Technology Services stocks are likely familiar with TTEC Holdings (TTEC - Free Report) and DocuSign (DOCU - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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 DocuSign are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that TTEC likely has seen a stronger improvement to its earnings outlook than DOCU has recently. But this is just one factor that value investors are interested in.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

TTEC currently has a forward P/E ratio of 23.41, while DOCU has a forward P/E of 288.11. We also note that TTEC has a PEG ratio of 2.93. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. DOCU currently has a PEG ratio of 5.32.

Another notable valuation metric for TTEC is its P/B ratio of 4.97. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, DOCU has a P/B of 14.72.

These are just a few of the metrics contributing to TTEC's Value grade of B and DOCU's Value grade of F.

TTEC has seen stronger estimate revision activity and sports more attractive valuation metrics than DOCU, so it seems like value investors will conclude that TTEC is the superior option right now.


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