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SIFY vs. TTD: Which Stock Should Value Investors Buy Now?

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Investors looking for stocks in the Internet - Services sector might want to consider either Sify Technologies Limited (SIFY - Free Report) or 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.

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, both Sify Technologies Limited and The Trade Desk are holding a Zacks Rank of # 2 (Buy). 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 piece of the puzzle for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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 31.55, while TTD has a forward P/E of 98.66. We also note that SIFY has a PEG ratio of 1.58. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. TTD currently has a PEG ratio of 4.29.

Another notable valuation metric for SIFY is its P/B ratio of 3.53. 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 30.43.

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


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