Investors looking for stocks in the Technology Services sector might want to consider either Climb Global Solutions (CLMB) or Amadeus IT Group SA Unsponsored ADR (AMADY). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Climb Global Solutions has a Zacks Rank of #1 (Strong Buy), while Amadeus IT Group SA Unsponsored ADR has a Zacks Rank of #2 (Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that CLMB is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

CLMB currently has a forward P/E ratio of 18.75, while AMADY has a forward P/E of 23.38. We also note that CLMB has a PEG ratio of 1.56. 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. AMADY currently has a PEG ratio of 3.45.

Another notable valuation metric for CLMB is its P/B ratio of 4.86. 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, AMADY has a P/B of 6.57.

These are just a few of the metrics contributing to CLMB's Value grade of B and AMADY's Value grade of C.

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

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Climb Global Solutions, Inc. (CLMB) : Free Stock Analysis Report

Amadeus IT Group SA Unsponsored ADR (AMADY) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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