Investors interested in Aerospace - Defense stocks are likely familiar with RTX (RTX) and Airbus Group (EADSY). 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 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 #3 (Hold), 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. However, value investors will care about much more than just this.

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.

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.

RTX currently has a forward P/E ratio of 19.66, while EADSY has a forward P/E of 21.88. We also note that RTX has a PEG ratio of 2.03. 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 6.82.

Another notable valuation metric for RTX is its P/B ratio of 2.76. 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, EADSY has a P/B of 6.01.

Based on these metrics and many more, RTX holds a Value grade of B, while EADSY has a Value grade of C.

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.

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

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