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TTEC vs. PSTG: 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 Everpure (PSTG - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

TTEC Holdings has a Zacks Rank of #1 (Strong Buy), while Everpure 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 TTEC is likely seeing its earnings outlook improve to a greater extent. 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.

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 2.13, while PSTG has a forward P/E of 28.10. We also note that TTEC has a PEG ratio of 0.27. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PSTG currently has a PEG ratio of 1.51.

Another notable valuation metric for TTEC is its P/B ratio of 1.1. 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, PSTG has a P/B of 14.95.

These metrics, and several others, help TTEC earn a Value grade of A, while PSTG has been given a Value grade of D.

TTEC has seen stronger estimate revision activity and sports more attractive valuation metrics than PSTG, so it seems like value investors will conclude that TTEC is the superior option right now.

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