Investors interested in stocks from the Utility - Electric Power sector have probably already heard of Entergy (ETR Quick QuoteETR - Free Report) and PSEG (PEG Quick QuotePEG - 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Entergy has a Zacks Rank of #2 (Buy), while PSEG has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that ETR likely has seen a stronger improvement to its earnings outlook than PEG has recently. However, value investors will care about much more than just this.

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.

ETR currently has a forward P/E ratio of 14.18, while PEG has a forward P/E of 17.86. We also note that ETR has a PEG ratio of 2.02. 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. PEG currently has a PEG ratio of 2.86.

Another notable valuation metric for ETR is its P/B ratio of 1.48. 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, PEG has a P/B of 2.11.

Based on these metrics and many more, ETR holds a Value grade of B, while PEG has a Value grade of D.

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