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Investors interested in Oil and Gas - Integrated - United States stocks are likely familiar with ConocoPhillips (COP) and Cactus, Inc. (WHD). But which of these two companies is the best option for those looking for undervalued stocks? 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Right now, ConocoPhillips is sporting a Zacks Rank of #2 (Buy), while Cactus, Inc. has a Zacks Rank of #3 (Hold). This means that COP's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.

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 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.

COP currently has a forward P/E ratio of 13.66, while WHD has a forward P/E of 17.65. We also note that COP has a PEG ratio of 2.73. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. WHD currently has a PEG ratio of 9.10.

Another notable valuation metric for COP is its P/B ratio of 3.12. 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, WHD has a P/B of 3.77.

Based on these metrics and many more, COP holds a Value grade of B, while WHD has a Value grade of D.

COP has seen stronger estimate revision activity and sports more attractive valuation metrics than WHD, so it seems like value investors will conclude that COP is the superior 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.