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SIFY vs. TTD: Which Stock Is the Better Value Option?

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Investors interested in Internet - Services stocks are likely familiar with Sify Technologies Limited (SIFY - Free Report) and The Trade Desk (TTD - 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.

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 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.

Right now, Sify Technologies Limited is sporting a Zacks Rank of #2 (Buy), while The Trade Desk has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that SIFY is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.

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 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.

SIFY currently has a forward P/E ratio of 35.14, while TTD has a forward P/E of 154.58. We also note that SIFY has a PEG ratio of 1.76. 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. TTD currently has a PEG ratio of 6.18.

Another notable valuation metric for SIFY is its P/B ratio of 2.76. 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, TTD has a P/B of 44.31.

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

SIFY 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 SIFY is likely the superior value option right now.


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