Investors with an interest in Computers - IT Services stocks have likely encountered both TaskUs (TASK) and Dynatrace (DT). But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 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, TaskUs is sporting a Zacks Rank of #2 (Buy), while Dynatrace has a Zacks Rank of #3 (Hold). 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 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.

TASK currently has a forward P/E ratio of 12.67, while DT has a forward P/E of 41.45. We also note that TASK has a PEG ratio of 2.89. 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 4.12.

Another notable valuation metric for TASK is its P/B ratio of 3.12. 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, DT has a P/B of 7.61.

These metrics, and several others, help TASK earn a Value grade of B, while DT has been given a Value grade of F.

TASK has seen stronger estimate revision activity and sports more attractive valuation metrics than DT, so it seems like value investors will conclude that TASK is the superior option right now.

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