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TTEC or AQUA: Which Is the Better Value Stock Right Now?

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Investors with an interest in Technology Services stocks have likely encountered both TTEC Holdings (TTEC - Free Report) and Evoqua Water . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, both TTEC Holdings and Evoqua Water are holding a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one piece of the puzzle for value investors.

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.

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 15.50, while AQUA has a forward P/E of 48.08. We also note that TTEC has a PEG ratio of 1.34. 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. AQUA currently has a PEG ratio of 3.21.

Another notable valuation metric for TTEC is its P/B ratio of 6.56. 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, AQUA has a P/B of 8.39.

Based on these metrics and many more, TTEC holds a Value grade of B, while AQUA has a Value grade of D.

Both TTEC and AQUA 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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