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TIXT vs. FUTU: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Technology Services sector have probably already heard of Telus International (TIXT - Free Report) and Futu Holdings Limited Sponsored ADR (FUTU - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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.
Telus International has a Zacks Rank of #2 (Buy), while Futu Holdings Limited Sponsored ADR has a Zacks Rank of #3 (Hold) right now. 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 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.
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 8.78, while FUTU has a forward P/E of 22.48. We also note that TIXT has a PEG ratio of 1.23. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. FUTU currently has a PEG ratio of 1.43.
Another notable valuation metric for TIXT is its P/B ratio of 0.20. 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, FUTU has a P/B of 3.85.
These are just a few of the metrics contributing to TIXT's Value grade of A and FUTU's Value grade of C.
TIXT sticks out from FUTU 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. FUTU: Which Stock Is the Better Value Option?
Investors interested in stocks from the Technology Services sector have probably already heard of Telus International (TIXT - Free Report) and Futu Holdings Limited Sponsored ADR (FUTU - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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.
Telus International has a Zacks Rank of #2 (Buy), while Futu Holdings Limited Sponsored ADR has a Zacks Rank of #3 (Hold) right now. 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 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.
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 8.78, while FUTU has a forward P/E of 22.48. We also note that TIXT has a PEG ratio of 1.23. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. FUTU currently has a PEG ratio of 1.43.
Another notable valuation metric for TIXT is its P/B ratio of 0.20. 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, FUTU has a P/B of 3.85.
These are just a few of the metrics contributing to TIXT's Value grade of A and FUTU's Value grade of C.
TIXT sticks out from FUTU in both our Zacks Rank and Style Scores models, so value investors will likely feel that TIXT is the better option right now.