Investors with an interest in Manufacturing - Electronics stocks have likely encountered both EnerSys (ENS) and ABB (ABBNY). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.

EnerSys and ABB 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 ENS is likely seeing its earnings outlook improve to a greater extent. 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 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.

ENS currently has a forward P/E ratio of 9.32, while ABBNY has a forward P/E of 22.44. We also note that ENS has a PEG ratio of 0.52. 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. ABBNY currently has a PEG ratio of 2.27.

Another notable valuation metric for ENS is its P/B ratio of 2.01. 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, ABBNY has a P/B of 6.54.

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

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

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Enersys (ENS) : Free Stock Analysis Report

ABB Ltd (ABBNY) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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