Investors interested in stocks from the Medical - Products sector have probably already heard of Smith & Nephew (SNN) and EssilorLuxottica Unsponsored ADR (ESLOY). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, Smith & Nephew has a Zacks Rank of #2 (Buy), while EssilorLuxottica Unsponsored ADR has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that SNN is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture 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.

SNN currently has a forward P/E ratio of 15.83, while ESLOY has a forward P/E of 35.31. We also note that SNN has a PEG ratio of 0.96. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ESLOY currently has a PEG ratio of 4.52.

Another notable valuation metric for SNN is its P/B ratio of 2.58. 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, ESLOY has a P/B of 3.01.

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

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

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Smith & Nephew SNATS, Inc. (SNN):Free Stock Analysis Report

EssilorLuxottica Unsponsored ADR (ESLOY):Free Stock Analysis Report

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

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