Investors with an interest in Banks - Foreign stocks have likely encountered both Mitsubishi UFJ (MUFG Quick QuoteMUFG - Free Report) and Royal Bank (RY Quick QuoteRY - 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.

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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Mitsubishi UFJ and Royal Bank are both sporting a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. 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.

MUFG currently has a forward P/E ratio of 7.77, while RY has a forward P/E of 11.73. We also note that MUFG has a PEG ratio of 1.29. 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. RY currently has a PEG ratio of 2.05.

Another notable valuation metric for MUFG is its P/B ratio of 0.42. 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, RY has a P/B of 1.98.

These metrics, and several others, help MUFG earn a Value grade of A, while RY has been given a Value grade of D.

Both MUFG and RY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that MUFG is the superior value option right now.