Back to top

Image: Bigstock

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

Read MoreHide Full Article

Investors interested in Computers - IT Services stocks are likely familiar with TaskUs (TASK - Free Report) and Epam (EPAM - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, TaskUs is sporting a Zacks Rank of #2 (Buy), while Epam has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that TASK has an improving earnings outlook. But this is just one factor that value investors are interested in.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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 9.09, while EPAM has a forward P/E of 28.96. We also note that TASK has a PEG ratio of 1.88. 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. EPAM currently has a PEG ratio of 9.75.

Another notable valuation metric for TASK is its P/B ratio of 2.43. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, EPAM has a P/B of 4.91.

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

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


See More Zacks Research for These Tickers


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


EPAM Systems, Inc. (EPAM) - free report >>

TaskUs, Inc. (TASK) - free report >>

Published in