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TTEC or AQUA: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Technology Services sector might want to consider either TTEC Holdings (TTEC - Free Report) or Evoqua Water . 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 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.

TTEC Holdings has a Zacks Rank of #2 (Buy), while Evoqua Water has a Zacks Rank of #3 (Hold) right now. This means that TTEC's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.

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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

TTEC currently has a forward P/E ratio of 16.92, while AQUA has a forward P/E of 52.18. We also note that TTEC has a PEG ratio of 2.73. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AQUA currently has a PEG ratio of 3.48.

Another notable valuation metric for TTEC is its P/B ratio of 7.16. 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, AQUA has a P/B of 9.10.

Based on these metrics and many more, TTEC holds a Value grade of B, while AQUA has a Value grade of C.

TTEC stands above AQUA thanks to its solid earnings outlook, and based on these valuation figures, we also feel that TTEC is the superior value option right now.


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