Investors interested in stocks from the Technology Services sector have probably already heard of Smiths Group PLC (SMGZY) and Thomson Reuters (TRI). But which of these two stocks presents investors with the better value opportunity right now? 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Smiths Group PLC and Thomson Reuters are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that SMGZY has an improving earnings outlook. But this is just one factor that value investors are interested in.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.

SMGZY currently has a forward P/E ratio of 12.89, while TRI has a forward P/E of 44.35. We also note that SMGZY has a PEG ratio of 1.12. 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. TRI currently has a PEG ratio of 5.54.

Another notable valuation metric for SMGZY is its P/B ratio of 2.42. 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, TRI has a P/B of 6.38.

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

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

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Smiths Group PLC (SMGZY) : Free Stock Analysis Report

Thomson Reuters Corp (TRI) : Free Stock Analysis Report