Investors interested in stocks from the Leisure and Recreation Products sector have probably already heard of Amer Sports, Inc. (AS) and Sportradar Group AG (SRAD). 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, Amer Sports, Inc. is sporting a Zacks Rank of #2 (Buy), while Sportradar Group AG has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that AS likely has seen a stronger improvement to its earnings outlook than SRAD has recently. But this is only part of the picture for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

AS currently has a forward P/E ratio of 41.09, while SRAD has a forward P/E of 616.50. We also note that AS has a PEG ratio of 0.72. 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. SRAD currently has a PEG ratio of 15.53.

Another notable valuation metric for AS is its P/B ratio of 2.25. 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, SRAD has a P/B of 14.49.

These are just a few of the metrics contributing to AS's Value grade of B and SRAD's Value grade of F.

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

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