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TASK or DT: Which Is the Better Value Stock Right Now?

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Investors interested in Computers - IT Services stocks are likely familiar with TaskUs (TASK - Free Report) and Dynatrace (DT - Free Report) . 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.

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.

TaskUs and Dynatrace are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. This means that TASK's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.

TASK currently has a forward P/E ratio of 10.86, while DT has a forward P/E of 39.56. We also note that TASK has a PEG ratio of 2.47. 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. DT currently has a PEG ratio of 3.93.

Another notable valuation metric for TASK is its P/B ratio of 2.74. 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, DT has a P/B of 7.26.

These are just a few of the metrics contributing to TASK's Value grade of B and DT's Value grade of F.

TASK is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that TASK is likely the superior value option right now.


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Dynatrace, Inc. (DT) - free report >>

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