Investors with an interest in Broadcast Radio and Television stocks have likely encountered both Discovery Communications (DISCA) and Gaiam (GAIA). But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Discovery Communications has a Zacks Rank of #2 (Buy), while Gaiam has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that DISCA likely has seen a stronger improvement to its earnings outlook than GAIA has recently. But this is just one piece of the puzzle for value investors.

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.

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.

DISCA currently has a forward P/E ratio of 15.07, while GAIA has a forward P/E of 101.82. We also note that DISCA has a PEG ratio of 1.35. 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. GAIA currently has a PEG ratio of 6.79.

Another notable valuation metric for DISCA is its P/B ratio of 1.20. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, GAIA has a P/B of 2.86.

These are just a few of the metrics contributing to DISCA's Value grade of A and GAIA's Value grade of C.

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

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