Investors looking for stocks in the Manufacturing - Electronics sector might want to consider either Emerson Electric (EMR) or Kone Oyj Unsponsored ADR (KNYJY). 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 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.

Emerson Electric and Kone Oyj Unsponsored ADR are both sporting a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. However, value investors will care about much more than just this.

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.

EMR currently has a forward P/E ratio of 15.76, while KNYJY has a forward P/E of 22.82. We also note that EMR has a PEG ratio of 1.84. 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. KNYJY currently has a PEG ratio of 2.31.

Another notable valuation metric for EMR 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, KNYJY has a P/B of 7.43.

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

Both EMR and KNYJY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that EMR is the superior value option right now.

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Emerson Electric Co. (EMR) : Free Stock Analysis Report

Kone Oyj Unsponsored ADR (KNYJY) : Free Stock Analysis Report

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

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