Back to top

Image: Bigstock

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

Read MoreHide Full Article

Investors with an interest in Internet - Services stocks have likely encountered both Sify Technologies Limited (SIFY - Free Report) and The Trade Desk (TTD - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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.

Sify Technologies Limited and The Trade Desk are both sporting a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. 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.

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.

SIFY currently has a forward P/E ratio of 34.73, while TTD has a forward P/E of 93.96. We also note that SIFY has a PEG ratio of 1.74. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TTD currently has a PEG ratio of 4.09.

Another notable valuation metric for SIFY is its P/B ratio of 3.89. 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, TTD has a P/B of 28.98.

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

Both SIFY and TTD are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SIFY is the superior value option right now.


See More Zacks Research for These Tickers


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


The Trade Desk (TTD) - free report >>

Sify Technologies Limited (SIFY) - free report >>

Published in