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

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Investors interested in stocks from the Technology Services sector have probably already heard of TTEC Holdings (TTEC - Free Report) and DocuSign (DOCU - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

TTEC Holdings and DocuSign are both sporting a Zacks Rank of # 2 (Buy) right now. 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. But this is just one factor that value investors are interested in.

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 22.69, while DOCU has a forward P/E of 416.74. We also note that TTEC has a PEG ratio of 3.57. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DOCU currently has a PEG ratio of 13.36.

Another notable valuation metric for TTEC is its P/B ratio of 5.33. 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, DOCU has a P/B of 66.93.

Based on these metrics and many more, TTEC holds a Value grade of A, while DOCU has a Value grade of F.

Both TTEC and DOCU 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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