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

TTEC

Investors looking for stocks in the Technology Services sector might want to consider either TTEC Holdings (TTEC - Free Report) or Evoqua Water . 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

TTEC Holdings has a Zacks Rank of #2 (Buy), while Evoqua Water has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that TTEC likely has seen a stronger improvement to its earnings outlook than AQUA has recently. However, value investors will care about much more than just this.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

TTEC currently has a forward P/E ratio of 15.82, while AQUA has a forward P/E of 49.90. We also note that TTEC has a PEG ratio of 2.56. 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. AQUA currently has a PEG ratio of 3.33.

Another notable valuation metric for TTEC is its P/B ratio of 6.70. 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, AQUA has a P/B of 8.42.

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

TTEC sticks out from AQUA in both our Zacks Rank and Style Scores models, so value investors will likely feel that TTEC is the better option right now.

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