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TASK or EPAM: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Computers - IT Services sector have probably already heard of TaskUs (TASK - Free Report) and Epam (EPAM - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 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.

Currently, TaskUs has a Zacks Rank of #2 (Buy), while Epam has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that TASK likely has seen a stronger improvement to its earnings outlook than EPAM has recently. However, value investors will care about much more than just this.

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.

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.

TASK currently has a forward P/E ratio of 9.95, while EPAM has a forward P/E of 30.02. We also note that TASK has a PEG ratio of 2.06. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. EPAM currently has a PEG ratio of 10.11.

Another notable valuation metric for TASK is its P/B ratio of 2.79. 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, EPAM has a P/B of 5.10.

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

TASK has seen stronger estimate revision activity and sports more attractive valuation metrics than EPAM, so it seems like value investors will conclude that TASK is the superior option right now.


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