Investors with an interest in Internet - Content stocks have likely encountered both Tencent Music Entertainment Group Sponsored ADR (TME Quick QuoteTME - Free Report) and RELX PLC (RELX Quick QuoteRELX - 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Tencent Music Entertainment Group Sponsored ADR has a Zacks Rank of #2 (Buy), while RELX PLC has a Zacks Rank of #3 (Hold) right now. This means that TME's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

TME currently has a forward P/E ratio of 13.14, while RELX has a forward P/E of 23.11. We also note that TME has a PEG ratio of 0.95. 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. RELX currently has a PEG ratio of 1.83.

Another notable valuation metric for TME is its P/B ratio of 0.91. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, RELX has a P/B of 12.15.

These are just a few of the metrics contributing to TME's Value grade of B and RELX's Value grade of C.

TME stands above RELX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that TME is the superior value option right now.