Investors looking for stocks in the Banks - Foreign sector might want to consider either Banco Santander-Chile (BSAC Quick QuoteBSAC - Free Report) or Commonwealth Bank of Australia Sponsored ADR (CMWAY Quick QuoteCMWAY - 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.

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

Right now, Banco Santander-Chile is sporting a Zacks Rank of #2 (Buy), while Commonwealth Bank of Australia Sponsored ADR 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 BSAC is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.

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.

BSAC currently has a forward P/E ratio of 11.07, while CMWAY has a forward P/E of 24.63. We also note that BSAC has a PEG ratio of 0.42. 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. CMWAY currently has a PEG ratio of 7.90.

Another notable valuation metric for BSAC is its P/B ratio of 2.01. 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, CMWAY has a P/B of 3.

These are just a few of the metrics contributing to BSAC's Value grade of A and CMWAY's Value grade of F.

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