Investors interested in Utility - Electric Power stocks are likely familiar with Xcel Energy (XEL Quick QuoteXEL - Free Report) and PSEG (PEG Quick QuotePEG - 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.

Right now, Xcel Energy is sporting a Zacks Rank of #2 (Buy), while PSEG has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that XEL likely has seen a stronger improvement to its earnings outlook than PEG has recently. But this is just one piece of the puzzle for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.

XEL currently has a forward P/E ratio of 16.58, while PEG has a forward P/E of 21.85. We also note that XEL has a PEG ratio of 2.59. 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. PEG currently has a PEG ratio of 2.99.

Another notable valuation metric for XEL is its P/B ratio of 1.83. 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, PEG has a P/B of 2.53.

These are just a few of the metrics contributing to XEL's Value grade of B and PEG's Value grade of D.

XEL 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 XEL is likely the superior value option right now.