Investors interested in Leisure and Recreation Services stocks are likely familiar with Carnival (CCL) and Atour Lifestyle Holdings Limited Sponsored ADR (ATAT). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Carnival and Atour Lifestyle Holdings Limited Sponsored ADR are both sporting a Zacks Rank of # 2 (Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one piece of the puzzle 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.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

CCL currently has a forward P/E ratio of 11.34, while ATAT has a forward P/E of 18.08. We also note that CCL has a PEG ratio of 0.50. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ATAT currently has a PEG ratio of 0.96.

Another notable valuation metric for CCL is its P/B ratio of 2.66. 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, ATAT has a P/B of 9.74.

These metrics, and several others, help CCL earn a Value grade of A, while ATAT has been given a Value grade of C.

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

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Carnival Corporation (CCL) : Free Stock Analysis Report

Atour Lifestyle Holdings Limited Sponsored ADR (ATAT) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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