Investors interested in stocks from the Banks - Foreign sector have probably already heard of Nordea Bank AB (NRDBY Quick QuoteNRDBY - Free Report) and Commonwealth Bank of Australia Sponsored ADR (CMWAY Quick QuoteCMWAY - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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

Nordea Bank AB and Commonwealth Bank of Australia Sponsored ADR 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 NRDBY has an improving earnings outlook. But this is just one factor that value investors are interested in.

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 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.

NRDBY currently has a forward P/E ratio of 9.40, while CMWAY has a forward P/E of 16.43. We also note that NRDBY has a PEG ratio of 2.29. 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. CMWAY currently has a PEG ratio of 2.51.

Another notable valuation metric for NRDBY is its P/B ratio of 1.04. 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, CMWAY has a P/B of 2.27.

These are just a few of the metrics contributing to NRDBY's Value grade of B and CMWAY's Value grade of F.

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