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

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

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

TTEC Holdings and ShotSpotter are sporting Zacks Ranks of #2 (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 SSTI has recently. But this is only part of the picture for value investors.

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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

TTEC currently has a forward P/E ratio of 28.18, while SSTI has a forward P/E of 406.44. We also note that TTEC has a PEG ratio of 3.52. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SSTI currently has a PEG ratio of 11.61.

Another notable valuation metric for TTEC is its P/B ratio of 5.99. 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, SSTI has a P/B of 14.87.

Based on these metrics and many more, TTEC holds a Value grade of B, while SSTI has a Value grade of D.

TTEC is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that TTEC is likely the superior value option right now.


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

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