Investors looking for stocks in the Aerospace - Defense sector might want to consider either RTX (RTX) or Airbus Group (EADSY). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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.

RTX and Airbus Group are sporting Zacks Ranks of #2 (Buy) and #5 (Strong Sell), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that RTX has an improving earnings outlook. But this is just one piece of the puzzle for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.

RTX currently has a forward P/E ratio of 20.55, while EADSY has a forward P/E of 25.25. We also note that RTX has a PEG ratio of 2.12. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. EADSY currently has a PEG ratio of 2.70.

Another notable valuation metric for RTX is its P/B ratio of 2.71. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, EADSY has a P/B of 6.62.

These metrics, and several others, help RTX earn a Value grade of B, while EADSY has been given a Value grade of F.

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

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

RTX Corporation (RTX) : Free Stock Analysis Report

Airbus Group (EADSY) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research