Investors interested in Building Products - Home Builders stocks are likely familiar with PulteGroup (PHM) and NVR (NVR). 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.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. 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.

PulteGroup has a Zacks Rank of #2 (Buy), while NVR has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that PHM has an improving earnings outlook. But this is only part of the picture 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.

PHM currently has a forward P/E ratio of 10.13, while NVR has a forward P/E of 18.33. We also note that PHM has a PEG ratio of 0.53. 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. NVR currently has a PEG ratio of 2.41.

Another notable valuation metric for PHM is its P/B ratio of 2.50. 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, NVR has a P/B of 6.96.

These are just a few of the metrics contributing to PHM's Value grade of A and NVR's Value grade of D.

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

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