Investors interested in Internet - Content stocks are likely familiar with Yelp (YELP) and RELX PLC (RELX). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

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 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.

Yelp has a Zacks Rank of #1 (Strong Buy), while RELX PLC has a Zacks Rank of #4 (Sell) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that YELP is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.

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.

YELP currently has a forward P/E ratio of 17.04, while RELX has a forward P/E of 27.53. We also note that YELP has a PEG ratio of 0.55. 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. RELX currently has a PEG ratio of 3.14.

Another notable valuation metric for YELP is its P/B ratio of 3.54. 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, RELX has a P/B of 20.28.

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

YELP has seen stronger estimate revision activity and sports more attractive valuation metrics than RELX, so it seems like value investors will conclude that YELP is the superior option right now.

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