Investors interested in stocks from the Computer- Storage Devices sector have probably already heard of Teradata (TDC) and NetApp (NTAP). 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.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, both Teradata and NetApp are holding a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. 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.

TDC currently has a forward P/E ratio of 12.84, while NTAP has a forward P/E of 17.35. We also note that TDC has a PEG ratio of 1.78. 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. NTAP currently has a PEG ratio of 3.71.

Another notable valuation metric for TDC is its P/B ratio of 22.44. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, NTAP has a P/B of 27.08.

These are just a few of the metrics contributing to TDC's Value grade of B and NTAP's Value grade of C.

Both TDC and NTAP are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that TDC is the superior value option right now.

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