Investors with an interest in Building Products - Home Builders stocks have likely encountered both Meritage Homes (MTH) and PulteGroup (PHM). 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.Both Meritage Homes and PulteGroup have a Zacks Rank of # 1 (Strong 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 only part of the picture for value investors.Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.MTH currently has a forward P/E ratio of 8.58, while PHM has a forward P/E of 8.76. We also note that MTH has a PEG ratio of 0.33. 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. PHM currently has a PEG ratio of 0.59.Another notable valuation metric for MTH is its P/B ratio of 1.53. 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, PHM has a P/B of 1.85.These are just a few of the metrics contributing to MTH's Value grade of B and PHM's Value grade of C.Both MTH and PHM are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that MTH is the superior value option right now.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Meritage Homes Corporation (MTH): Free Stock Analysis Report PulteGroup, Inc. (PHM): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research