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TIXT vs. AQUA: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Technology Services sector have probably already heard of Telus International (TIXT - Free Report) and Evoqua Water . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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.
Right now, Telus International is sporting a Zacks Rank of #2 (Buy), while Evoqua Water has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that TIXT has an improving earnings outlook. However, value investors will care about much more than just this.
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.
TIXT currently has a forward P/E ratio of 20.97, while AQUA has a forward P/E of 37.49. We also note that TIXT has a PEG ratio of 1.07. 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. AQUA currently has a PEG ratio of 2.50.
Another notable valuation metric for TIXT is its P/B ratio of 3.96. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, AQUA has a P/B of 6.13.
These metrics, and several others, help TIXT earn a Value grade of B, while AQUA has been given a Value grade of C.
TIXT sticks out from AQUA in both our Zacks Rank and Style Scores models, so value investors will likely feel that TIXT is the better option right now.
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TIXT vs. AQUA: Which Stock Is the Better Value Option?
Investors interested in stocks from the Technology Services sector have probably already heard of Telus International (TIXT - Free Report) and Evoqua Water . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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.
Right now, Telus International is sporting a Zacks Rank of #2 (Buy), while Evoqua Water has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that TIXT has an improving earnings outlook. However, value investors will care about much more than just this.
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.
TIXT currently has a forward P/E ratio of 20.97, while AQUA has a forward P/E of 37.49. We also note that TIXT has a PEG ratio of 1.07. 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. AQUA currently has a PEG ratio of 2.50.
Another notable valuation metric for TIXT is its P/B ratio of 3.96. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, AQUA has a P/B of 6.13.
These metrics, and several others, help TIXT earn a Value grade of B, while AQUA has been given a Value grade of C.
TIXT sticks out from AQUA in both our Zacks Rank and Style Scores models, so value investors will likely feel that TIXT is the better option right now.