Investors interested in Diversified Communication Services stocks are likely familiar with NTT (NTTYY Quick QuoteNTTYY - Free Report) and Swisscom AG (SCMWY Quick QuoteSCMWY - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, NTT has a Zacks Rank of #1 (Strong Buy), while Swisscom AG has 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 NTTYY is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.

NTTYY currently has a forward P/E ratio of 10.49, while SCMWY has a forward P/E of 18.21. We also note that NTTYY has a PEG ratio of 1.51. 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. SCMWY currently has a PEG ratio of 7.68.

Another notable valuation metric for NTTYY is its P/B ratio of 1.46. 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, SCMWY has a P/B of 27.13.

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

NTTYY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that NTTYY is likely the superior value option right now.