Investors with an interest in Industrial Services stocks have likely encountered both Siemens AG (SIEGY) and W.W. Grainger (GWW). 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Right now, Siemens AG is sporting a Zacks Rank of #1 (Strong Buy), while W.W. Grainger has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that SIEGY likely has seen a stronger improvement to its earnings outlook than GWW has recently. 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.

SIEGY currently has a forward P/E ratio of 15.22, while GWW has a forward P/E of 27.97. We also note that SIEGY has a PEG ratio of 2.55. 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. GWW currently has a PEG ratio of 3.02.

Another notable valuation metric for SIEGY is its P/B ratio of 2.63. 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, GWW has a P/B of 14.73.

These are just a few of the metrics contributing to SIEGY's Value grade of B and GWW's Value grade of C.

SIEGY stands above GWW thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SIEGY is the superior value option right now.

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