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TTEC vs. API: Which Stock Is the Better Value Option?

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Investors with an interest in Technology Services stocks have likely encountered both TTEC Holdings (TTEC - Free Report) and Agora, Inc. Sponsored ADR (API - 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.

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 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, both TTEC Holdings and Agora, Inc. Sponsored ADR are holding a Zacks Rank of #2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. However, value investors will care about much more than just this.

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 2.98, while API has a forward P/E of 27.71. We also note that TTEC has a PEG ratio of 0.25. 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. API currently has a PEG ratio of 0.87.

Another notable valuation metric for TTEC is its P/B ratio of 0.59. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, API has a P/B of 0.78.

These are just a few of the metrics contributing to TTEC's Value grade of A and API's Value grade of C.

Both TTEC and API are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that TTEC is the superior value option right now.


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