Investors interested in Leisure and Recreation Services stocks are likely familiar with Royal Caribbean (RCL) and Airbnb, Inc. (ABNB). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Royal Caribbean and Airbnb, Inc. are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that RCL's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.

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.

RCL currently has a forward P/E ratio of 15.24, while ABNB has a forward P/E of 32.81. We also note that RCL has a PEG ratio of 0.84. 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. ABNB currently has a PEG ratio of 3.41.

Another notable valuation metric for RCL is its P/B ratio of 7.89. 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, ABNB has a P/B of 10.73.

These metrics, and several others, help RCL earn a Value grade of B, while ABNB has been given a Value grade of D.

RCL is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that RCL is likely the superior value option right now.

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Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report

Airbnb, Inc. (ABNB) : Free Stock Analysis Report

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

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