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TTEC vs. IBTA: Which Stock Should Value Investors Buy Now?

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Investors with an interest in Technology Services stocks have likely encountered both TTEC Holdings (TTEC - Free Report) and Ibotta (IBTA - 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.

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.

TTEC Holdings and Ibotta are sporting Zacks Ranks of #2 (Buy) and #5 (Strong Sell), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that TTEC has an improving earnings outlook. 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.

TTEC currently has a forward P/E ratio of 3.25, while IBTA has a forward P/E of 34.85. We also note that TTEC has a PEG ratio of 0.40. 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. IBTA currently has a PEG ratio of 3.70.

Another notable valuation metric for TTEC is its P/B ratio of 0.63. 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, IBTA has a P/B of 2.50.

These are just a few of the metrics contributing to TTEC's Value grade of B and IBTA's Value grade of D.

TTEC is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that TTEC is likely the superior value option right now.


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TeleTech Holdings, Inc. (TTEC) - free report >>

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