Investors interested in REIT and Equity Trust stocks are likely familiar with Annaly Capital Management (NLY Quick QuoteNLY - Free Report) and Hannon Armstrong (HASI Quick QuoteHASI - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. 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.

Annaly Capital Management and Hannon Armstrong are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that NLY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.

NLY currently has a forward P/E ratio of 5.91, while HASI has a forward P/E of 18.54. We also note that NLY has a PEG ratio of 1.18. 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. HASI currently has a PEG ratio of 1.71.

Another notable valuation metric for NLY is its P/B ratio of 1.08. 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, HASI has a P/B of 2.07.

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

NLY 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 NLY is likely the superior value option right now.