Investors interested in stocks from the Aerospace - Defense Equipment sector have probably already heard of Leonardo DRS, Inc. (DRS) and Heico Corporation (HEI). 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.

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 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.

Currently, both Leonardo DRS, Inc. and Heico Corporation are holding a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is only part of the picture for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.

DRS currently has a forward P/E ratio of 33.85, while HEI has a forward P/E of 57.12. We also note that DRS has a PEG ratio of 2.32. 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. HEI currently has a PEG ratio of 3.35.

Another notable valuation metric for DRS is its P/B ratio of 3.75. 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, HEI has a P/B of 9.15.

These are just a few of the metrics contributing to DRS's Value grade of B and HEI's Value grade of D.

Both DRS and HEI are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that DRS 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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