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TIXT vs. JAMF: Which Stock Is the Better Value Option?

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

Right now, Telus International is sporting a Zacks Rank of #2 (Buy), while Jamf Holding has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that TIXT is likely seeing its earnings outlook improve to a greater extent. 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.

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 19.85, while JAMF has a forward P/E of 213.08. We also note that TIXT has a PEG ratio of 1.01. 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. JAMF currently has a PEG ratio of 6.79.

Another notable valuation metric for TIXT is its P/B ratio of 3.75. 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 4.24.

Based on these metrics and many more, TIXT holds a Value grade of B, while JAMF has 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.


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

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

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