Investors interested in stocks from the Beverages - Soft drinks sector have probably already heard of Fomento Economico (FMX Quick QuoteFMX - Free Report) and Coca-Cola (KO Quick QuoteKO - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Fomento Economico and Coca-Cola are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that FMX's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.

FMX currently has a forward P/E ratio of 17.47, while KO has a forward P/E of 24.54. We also note that FMX has a PEG ratio of 1.53. 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. KO currently has a PEG ratio of 3.82.

Another notable valuation metric for FMX is its P/B ratio of 3.83. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, KO has a P/B of 10.54.

These metrics, and several others, help FMX earn a Value grade of A, while KO has been given a Value grade of C.

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