Back to top

Image: Bigstock

TIXT vs. JAMF: Which Stock Should Value Investors Buy Now?

Read MoreHide Full Article

Investors interested in Technology Services stocks are likely familiar with Telus International (TIXT - Free Report) and Jamf Holding (JAMF - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, Telus International has a Zacks Rank of #2 (Buy), while Jamf Holding has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that TIXT has an improving earnings outlook. But this is only part of the picture for value investors.

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 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.

TIXT currently has a forward P/E ratio of 17.94, while JAMF has a forward P/E of 184.46. We also note that TIXT has a PEG ratio of 0.92. 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. JAMF currently has a PEG ratio of 3.65.

Another notable valuation metric for TIXT is its P/B ratio of 3.45. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, JAMF has a P/B of 3.87.

These metrics, and several others, help TIXT earn a Value grade of B, while JAMF has been given a Value grade of F.

TIXT sticks out from JAMF in both our Zacks Rank and Style Scores models, so value investors will likely feel that TIXT is the better option right now.


See More Zacks Research for These Tickers


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


Jamf Holding Corp. (JAMF) - free report >>

TELUS International (CDA) Inc. (TIXT) - free report >>

Published in