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

By Zacks Investment ResearchStock MarketsApr 01, 2020 11:40PM ET
www.investing.com/analysis/ttec-or-docu-which-is-the-better-value-stock-right-now-200520441
TTEC or DOCU: Which Is the Better Value Stock Right Now?
By Zacks Investment Research   |  Apr 01, 2020 11:40PM ET
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Investors interested in Technology Services stocks are likely familiar with TTEC Holdings (TTEC) and DocuSign (DOCU). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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.

TTEC Holdings has a Zacks Rank of #2 (Buy), while DocuSign has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that TTEC is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

TTEC currently has a forward P/E ratio of 15.99, while DOCU has a forward P/E of 172.82. We also note that TTEC has a PEG ratio of 1.42. 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. DOCU currently has a PEG ratio of 3.70.

Another notable valuation metric for TTEC is its P/B ratio of 3.51. 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 30.59.

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

TTEC stands above DOCU thanks to its solid earnings outlook, and based on these valuation figures, we also feel that TTEC is the superior value option right now.


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

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

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