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TTEC or MLNK: Which Is the Better Value Stock Right Now?

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Investors with an interest in Technology Services stocks have likely encountered both TTEC Holdings (TTEC - Free Report) and MeridianLink (MLNK - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, TTEC Holdings is sporting a Zacks Rank of #2 (Buy), while MeridianLink has a Zacks Rank of #3 (Hold). 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 only part of the picture 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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

TTEC currently has a forward P/E ratio of 4.72, while MLNK has a forward P/E of 45.88. We also note that TTEC has a PEG ratio of 0.28. 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. MLNK currently has a PEG ratio of 1.55.

Another notable valuation metric for TTEC is its P/B ratio of 0.9. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, MLNK has a P/B of 2.9.

Based on these metrics and many more, TTEC holds a Value grade of B, while MLNK has a Value grade of D.

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

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