Back to top

Image: Bigstock

TTEC vs. AQUA: Which Stock Is the Better Value Option?

Read MoreHide Full Article

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.

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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, both TTEC Holdings and Evoqua Water are holding a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. However, value investors will care about much more than just this.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.

TTEC currently has a forward P/E ratio of 16.15, while AQUA has a forward P/E of 51.71. We also note that TTEC has a PEG ratio of 2.61. 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. AQUA currently has a PEG ratio of 3.45.

Another notable valuation metric for TTEC is its P/B ratio of 6.84. 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 9.02.

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

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


See More Zacks Research for These Tickers


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


TeleTech Holdings, Inc. (TTEC) - free report >>

Published in