Investors looking for stocks in the Real Estate - Operations sector might want to consider either KE Holdings Inc. Sponsored ADR (BEKE) or Zillow (Z). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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.

KE Holdings Inc. Sponsored ADR and Zillow are both sporting a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one piece of the puzzle for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

BEKE currently has a forward P/E ratio of 14.13, while Z has a forward P/E of 36.01. We also note that BEKE has a PEG ratio of 2.18. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. Z currently has a PEG ratio of 2.68.

Another notable valuation metric for BEKE is its P/B ratio of 2.07. 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, Z has a P/B of 3.91.

These are just a few of the metrics contributing to BEKE's Value grade of B and Z's Value grade of F.

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

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