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TASK vs. DT: Which Stock Is the Better Value Option?

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Investors interested in Computers - IT Services stocks are likely familiar with TaskUs (TASK - Free Report) and Dynatrace (DT - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, TaskUs has a Zacks Rank of #2 (Buy), while Dynatrace has a Zacks Rank of #3 (Hold). This means that TASK's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.

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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

TASK currently has a forward P/E ratio of 13.84, while DT has a forward P/E of 44.46. We also note that TASK has a PEG ratio of 0.93. 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. DT currently has a PEG ratio of 2.28.

Another notable valuation metric for TASK is its P/B ratio of 4.37. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, DT has a P/B of 7.53.

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

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


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Dynatrace, Inc. (DT) - free report >>

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