Investors interested in Automotive - Foreign stocks are likely familiar with Porsche Automobil Holding SE Unsponsored ADR (POAHY Quick QuotePOAHY - Free Report) and Honda Motor (HMC Quick QuoteHMC - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Porsche Automobil Holding SE Unsponsored ADR and Honda Motor are both sporting a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. 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.

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.

POAHY currently has a forward P/E ratio of 4.17, while HMC has a forward P/E of 7.27. We also note that POAHY has a PEG ratio of 0.68. 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. HMC currently has a PEG ratio of 6.55.

Another notable valuation metric for POAHY is its P/B ratio of 0.29. 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, HMC has a P/B of 0.62.

These are just a few of the metrics contributing to POAHY's Value grade of B and HMC's Value grade of C.

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