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SIFY or SHOP: Which Is the Better Value Stock Right Now?

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·2 min read
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  • SIFY
  • SHOP

Investors looking for stocks in the Internet - Services sector might want to consider either Sify Technologies Limited (SIFY) or Shopify (SHOP). But which of these two stocks presents investors with the better value opportunity right now? 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Sify Technologies Limited and Shopify are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that SIFY 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 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 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.

SIFY currently has a forward P/E ratio of 26.15, while SHOP has a forward P/E of 219.32. We also note that SIFY has a PEG ratio of 1.31. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SHOP currently has a PEG ratio of 6.81.

Another notable valuation metric for SIFY is its P/B ratio of 3.46. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, SHOP has a P/B of 16.41.

These metrics, and several others, help SIFY earn a Value grade of A, while SHOP has been given a Value grade of D.

SIFY sticks out from SHOP in both our Zacks Rank and Style Scores models, so value investors will likely feel that SIFY is the better option right now.


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Sify Technologies Limited (SIFY) : Free Stock Analysis Report
 
Shopify Inc. (SHOP) : Free Stock Analysis Report
 
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