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TTEC or DOCU: Which Is the Better Value Stock Right 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 presents investors with the better value opportunity right now? Let's take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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 DocuSign are holding a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. 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.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

TTEC currently has a forward P/E ratio of 23.31, while DOCU has a forward P/E of 433.86. We also note that TTEC has a PEG ratio of 3.34. 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. DOCU currently has a PEG ratio of 13.91.

Another notable valuation metric for TTEC is its P/B ratio of 5.48. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, DOCU has a P/B of 69.67.

Based on these metrics and many more, TTEC holds a Value grade of B, 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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TeleTech Holdings, Inc. (TTEC) - free report >>

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