Investors looking for stocks in the Steel - Producers sector might want to consider either ArcelorMittal (MT) or United States Steel (X). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

ArcelorMittal and United States Steel are sporting Zacks Ranks of #2 (Buy) and #5 (Strong Sell), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that MT has an improving earnings outlook. But this is just one factor that value investors are interested in.

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 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.

MT currently has a forward P/E ratio of 7.68, while X has a forward P/E of 22.26. We also note that MT has a PEG ratio of 0.14. 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. X currently has a PEG ratio of 1.29.

Another notable valuation metric for MT is its P/B ratio of 0.46. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, X has a P/B of 0.76.

These are just a few of the metrics contributing to MT's Value grade of A and X's Value grade of C.

MT sticks out from X in both our Zacks Rank and Style Scores models, so value investors will likely feel that MT is the better option right now.

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