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Investors interested in stocks from the Chemical - Specialty sector have probably already heard of PPG Industries (PPG) and CSW Industrials (CSWI). 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

PPG Industries and CSW Industrials are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. This means that PPG's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

PPG currently has a forward P/E ratio of 16.82, while CSWI has a forward P/E of 34.07. We also note that PPG has a PEG ratio of 1.40. 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. CSWI currently has a PEG ratio of 2.27.

Another notable valuation metric for PPG is its P/B ratio of 4.19. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, CSWI has a P/B of 6.14.

These metrics, and several others, help PPG earn a Value grade of B, while CSWI has been given a Value grade of F.

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

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.