Investors interested in Schools stocks are likely familiar with Lincoln Educational Services Corporation (LINC Quick QuoteLINC - Free Report) and Universal Technical Institute (UTI Quick QuoteUTI - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Right now, Lincoln Educational Services Corporation is sporting a Zacks Rank of #2 (Buy), while Universal Technical Institute has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that LINC has an improving earnings outlook. But this is only part of the picture for value investors.

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.

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.

LINC currently has a forward P/E ratio of 23.31, while UTI has a forward P/E of 23.38. We also note that LINC has a PEG ratio of 1.55. 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. UTI currently has a PEG ratio of 1.56.

Another notable valuation metric for LINC is its P/B ratio of 2.27. 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, UTI has a P/B of 3.72.

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

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