Investors looking for stocks in the Leisure and Recreation Services sector might want to consider either Royal Caribbean (RCL Quick QuoteRCL - Free Report) or Atour Lifestyle Holdings Limited Sponsored ADR (ATAT Quick QuoteATAT - 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.

Royal Caribbean has a Zacks Rank of #2 (Buy), while Atour Lifestyle Holdings Limited Sponsored ADR has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that RCL likely has seen a stronger improvement to its earnings outlook than ATAT has recently. But this is just one piece of the puzzle for value investors.

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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

RCL currently has a forward P/E ratio of 12.76, while ATAT has a forward P/E of 16.99. We also note that RCL has a PEG ratio of 0.46. 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. ATAT currently has a PEG ratio of 0.47.

Another notable valuation metric for RCL is its P/B ratio of 6.68. 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, ATAT has a P/B of 8.42.

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

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