Investors looking for stocks in the Real Estate - Operations sector might want to consider either KE Holdings Inc. Sponsored ADR (BEKE) or Zillow (Z). 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

KE Holdings Inc. Sponsored ADR and Zillow are both sporting a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one piece of the puzzle for value investors.

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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

BEKE currently has a forward P/E ratio of 13.28, while Z has a forward P/E of 40.03. We also note that BEKE has a PEG ratio of 1.99. 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. Z currently has a PEG ratio of 2.52.

Another notable valuation metric for BEKE is its P/B ratio of 1.72. 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, Z has a P/B of 2.91.

Based on these metrics and many more, BEKE holds a Value grade of B, while Z has a Value grade of F.

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

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