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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.

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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

TTEC Holdings and DocuSign 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 DOCU has recently. 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.

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 24.27, while DOCU has a forward P/E of 419.28. We also note that TTEC has a PEG ratio of 2.77. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DOCU currently has a PEG ratio of 13.44.

Another notable valuation metric for TTEC is its P/B ratio of 5.84. 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 67.33.

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

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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