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NTTYY vs. AMADY: Which Stock Is the Better Value Option?

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Investors interested in Technology Services stocks are likely familiar with NTT (NTTYY - Free Report) and Amadeus IT Group SA Unsponsored ADR (AMADY - 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.

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.

NTT and Amadeus IT Group SA Unsponsored ADR are sporting Zacks Ranks of #2 (Buy) and #5 (Strong Sell), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that NTTYY is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture 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.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

NTTYY currently has a forward P/E ratio of 12.55, while AMADY has a forward P/E of 17.69. We also note that NTTYY has a PEG ratio of 2.16. 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. AMADY currently has a PEG ratio of 3.51.

Another notable valuation metric for NTTYY is its P/B ratio of 1.31. 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, AMADY has a P/B of 5.78.

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

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

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