Back to top

Image: Bigstock

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

Read MoreHide Full Article

Investors interested in Technology Services stocks are likely familiar with TTEC Holdings (TTEC - Free Report) and SailPoint Technologies . 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Currently, TTEC Holdings has a Zacks Rank of #1 (Strong Buy), while SailPoint Technologies has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that TTEC likely has seen a stronger improvement to its earnings outlook than SAIL has recently. But this is only part of the picture 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.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

TTEC currently has a forward P/E ratio of 22.19, while SAIL has a forward P/E of 167.72. We also note that TTEC has a PEG ratio of 1.14. 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. SAIL currently has a PEG ratio of 11.18.

Another notable valuation metric for TTEC is its P/B ratio of 6.13. 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, SAIL has a P/B of 8.47.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


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

Published in