Investors looking for stocks in the Schools sector might want to consider either Universal Technical Institute (UTI Quick QuoteUTI - 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.

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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Universal Technical Institute has a Zacks Rank of #1 (Strong Buy), while Bright Horizons Family Solutions has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that UTI has an improving earnings outlook. But this is just one piece of the puzzle for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.

UTI currently has a forward P/E ratio of 15.22, while BFAM has a forward P/E of 39.19. We also note that UTI has a PEG ratio of 1.01. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BFAM currently has a PEG ratio of 1.91.

Another notable valuation metric for UTI is its P/B ratio of 2.02. 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, BFAM has a P/B of 6.63.

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

UTI sticks out from BFAM in both our Zacks Rank and Style Scores models, so value investors will likely feel that UTI is the better option right now.