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

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Investors interested in Technology Services stocks are likely familiar with TTEC Holdings (TTEC - Free Report) and DocuSign (DOCU - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, TTEC Holdings has a Zacks Rank of #2 (Buy), while DocuSign has a Zacks Rank of #3 (Hold). 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. However, value investors will care about much more than just this.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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 21.20, while DOCU has a forward P/E of 265.37. We also note that TTEC has a PEG ratio of 2.65. 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. DOCU currently has a PEG ratio of 4.90.

Another notable valuation metric for TTEC is its P/B ratio of 4.51. 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, DOCU has a P/B of 13.56.

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

TTEC stands above DOCU thanks to its solid earnings outlook, and based on these valuation figures, we also feel that TTEC is the superior value option right now.


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