Investors looking for stocks in the Schools sector might want to consider either K12 (LRN Quick QuoteLRN - Free Report) or Bright Horizons Family Solutions (BFAM Quick QuoteBFAM - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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.

Currently, both K12 and Bright Horizons Family Solutions 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 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.

LRN currently has a forward P/E ratio of 37.08, while BFAM has a forward P/E of 38.71. We also note that LRN has a PEG ratio of 2.47. 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. BFAM currently has a PEG ratio of 3.65.

Another notable valuation metric for LRN is its P/B ratio of 2. 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, BFAM has a P/B of 9.72.

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

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