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TIXT vs. SMRT: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Technology Services sector might want to consider either Telus International (TIXT - Free Report) or SmartRent, Inc. (SMRT - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 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.
Telus International has a Zacks Rank of #2 (Buy), while SmartRent, Inc. has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that TIXT likely has seen a stronger improvement to its earnings outlook than SMRT has recently. But this is just one piece of the puzzle 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.
TIXT currently has a forward P/E ratio of 7.49, while SMRT has a forward P/E of 551.09. We also note that TIXT has a PEG ratio of 7. 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. SMRT currently has a PEG ratio of 27.55.
Another notable valuation metric for TIXT is its P/B ratio of 0.31. 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, SMRT has a P/B of 1.68.
These are just a few of the metrics contributing to TIXT's Value grade of A and SMRT's Value grade of D.
TIXT sticks out from SMRT 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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TIXT vs. SMRT: Which Stock Is the Better Value Option?
Investors looking for stocks in the Technology Services sector might want to consider either Telus International (TIXT - Free Report) or SmartRent, Inc. (SMRT - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 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.
Telus International has a Zacks Rank of #2 (Buy), while SmartRent, Inc. has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that TIXT likely has seen a stronger improvement to its earnings outlook than SMRT has recently. But this is just one piece of the puzzle 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.
TIXT currently has a forward P/E ratio of 7.49, while SMRT has a forward P/E of 551.09. We also note that TIXT has a PEG ratio of 7. 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. SMRT currently has a PEG ratio of 27.55.
Another notable valuation metric for TIXT is its P/B ratio of 0.31. 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, SMRT has a P/B of 1.68.
These are just a few of the metrics contributing to TIXT's Value grade of A and SMRT's Value grade of D.
TIXT sticks out from SMRT in both our Zacks Rank and Style Scores models, so value investors will likely feel that TIXT is the better option right now.