What you have is copper coming up from under the house. It looks to be a soldered street el (type of 90°) to female iron pipe thread. Then there is a brass 2 to 3 inch long male iron pipe thread nipple that the female iron pipe thread hose bib is screwed on to. I would turn off the water to your home, hold the brass nipple with a pipe wrench, and screw off the old hose bib with another pipe wrench or crescent wrench. Use teflon tape to help seal the threads of the brass nipple and screw on your female iron pipe ball valve. Since the nipple is brass there is no need to change it as they last a very long time. It will be the most quality and cost effective way. Here is the ball valve hose bib i use and have had in service for 10 plus years now.
http://www.amazon.com/Industries-102.../dp/B000BQRBFK
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“Enter by the narrow gate; for wide is the gate and broad is the way that leads to destruction, and there are many who go in by it. Because narrow is the gate and difficult is the way which leads to life, and there are few who find it."
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