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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 offers value investors a better bang for their buck right now? We'll need to take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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 has a Zacks Rank of #2 (Buy), while ShotSpotter has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that TTEC has an improving earnings outlook. But this is just one piece of the puzzle for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

TTEC currently has a forward P/E ratio of 25.54, while SSTI has a forward P/E of 226.70. We also note that TTEC has a PEG ratio of 1.31. 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. SSTI currently has a PEG ratio of 11.34.

Another notable valuation metric for TTEC is its P/B ratio of 7.34. 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, SSTI has a P/B of 16.22.

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

TTEC has seen stronger estimate revision activity and sports more attractive valuation metrics than SSTI, so it seems like value investors will conclude that TTEC is the superior option right now.


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

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