Investors with an interest in Internet - Software stocks have likely encountered both Magnite (MGNI) and Informatica Inc. (INFA). But which of these two stocks presents investors with the better value opportunity right now? 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Magnite has a Zacks Rank of #2 (Buy), while Informatica Inc. has a Zacks Rank of #3 (Hold) right now. This means that MGNI'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 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.

MGNI currently has a forward P/E ratio of 22.90, while INFA has a forward P/E of 23.35. We also note that MGNI has a PEG ratio of 0.62. 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. INFA currently has a PEG ratio of 2.17.

Another notable valuation metric for MGNI is its P/B ratio of 3.15. 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, INFA has a P/B of 3.26.

These metrics, and several others, help MGNI earn a Value grade of B, while INFA has been given a Value grade of D.

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

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