TTEC vs. SSTI: Which Stock Should Value Investors Buy Now?

TTEC SSTI

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 offers value investors a better bang for their buck right now? We'll need to 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 just one factor that value investors are interested in.

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 26.75, while SSTI has a forward P/E of 474.91. We also note that TTEC has a PEG ratio of 3.34. 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. SSTI currently has a PEG ratio of 13.57.

Another notable valuation metric for TTEC is its P/B ratio of 5.69. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, SSTI has a P/B of 17.37.

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

TTEC sticks out from SSTI 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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