Investors interested in stocks from the Manufacturing - General Industrial sector have probably already heard of Generac Holdings (GNRC) and Crane (CR). But which of these two companies is the best option for those looking for undervalued stocks? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Generac Holdings and Crane are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that GNRC is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle 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.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

GNRC currently has a forward P/E ratio of 22.84, while CR has a forward P/E of 31.97. We also note that GNRC has a PEG ratio of 1.90. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CR currently has a PEG ratio of 2.41.

Another notable valuation metric for GNRC is its P/B ratio of 3.90. 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, CR has a P/B of 5.55.

These are just a few of the metrics contributing to GNRC's Value grade of B and CR's Value grade of F.

GNRC is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that GNRC is likely the superior value option right now.

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Generac Holdings Inc. (GNRC) : Free Stock Analysis Report

Crane Company (CR) : Free Stock Analysis Report

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