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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 companies is the best option for those looking for undervalued stocks? Let's 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Sify Technologies Limited has a Zacks Rank of #2 (Buy), while The Trade Desk has a Zacks Rank of #3 (Hold) right now. 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 tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.

SIFY currently has a forward P/E ratio of 31, while TTD has a forward P/E of 129.98. We also note that SIFY has a PEG ratio of 1.55. 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 8.67.

Another notable valuation metric for SIFY is its P/B ratio of 3.41. 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 36.47.

These metrics, and several others, help SIFY earn a Value grade of A, while TTD has been given a Value grade of D.

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


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