Investors with an interest in Medical - Products stocks have likely encountered both Royal Philips (PHG) and EssilorLuxottica Unsponsored ADR (ESLOY). 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, both Royal Philips and EssilorLuxottica Unsponsored ADR are holding a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. 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 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.

PHG currently has a forward P/E ratio of 19.66, while ESLOY has a forward P/E of 30.93. We also note that PHG has a PEG ratio of 1.02. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ESLOY currently has a PEG ratio of 3.43.

Another notable valuation metric for PHG is its P/B ratio of 2.26. 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, ESLOY has a P/B of 2.48.

These are just a few of the metrics contributing to PHG's Value grade of A and ESLOY's Value grade of C.

Both PHG and ESLOY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that PHG is the superior value option right now.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Koninklijke Philips N.V. (PHG) : Free Stock Analysis Report

EssilorLuxottica Unsponsored ADR (ESLOY) : Free Stock Analysis Report