Investors interested in Banks - Foreign stocks are likely familiar with Mitsubishi UFJ (MUFG Quick QuoteMUFG - Free Report) and Toronto-Dominion Bank (TD Quick QuoteTD - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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, Mitsubishi UFJ has a Zacks Rank of #2 (Buy), while Toronto-Dominion Bank has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that MUFG is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.

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.

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.

MUFG currently has a forward P/E ratio of 8.89, while TD has a forward P/E of 13.73. We also note that MUFG has a PEG ratio of 0.61. 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. TD currently has a PEG ratio of 2.06.

Another notable valuation metric for MUFG is its P/B ratio of 0.51. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, TD has a P/B of 2.07.

Based on these metrics and many more, MUFG holds a Value grade of B, while TD has a Value grade of C.

MUFG has seen stronger estimate revision activity and sports more attractive valuation metrics than TD, so it seems like value investors will conclude that MUFG is the superior option right now.