Investors with an interest in Medical - Drugs stocks have likely encountered both Takeda Pharmaceutical Co. (TAK) and Daiichi Sankyo Co., Ltd. - Sponsored ADR (DSNKY). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Takeda Pharmaceutical Co. and Daiichi Sankyo Co., Ltd. - Sponsored ADR are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that TAK likely has seen a stronger improvement to its earnings outlook than DSNKY has recently. However, value investors will care about much more than just this.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.

TAK currently has a forward P/E ratio of 8.75, while DSNKY has a forward P/E of 31.85. We also note that TAK has a PEG ratio of 0.25. 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. DSNKY currently has a PEG ratio of 1.76.

Another notable valuation metric for TAK is its P/B ratio of 0.88. 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, DSNKY has a P/B of 4.23.

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

TAK 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 TAK is likely the superior value option right now.

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