Investors interested in Furniture stocks are likely familiar with Bassett Furniture (BSET) and WillScot (WSC). But which of these two stocks presents investors with the better value opportunity right now? 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Bassett Furniture is sporting a Zacks Rank of #2 (Buy), while WillScot has a Zacks Rank of #3 (Hold). This means that BSET's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
BSET currently has a forward P/E ratio of 14.87, while WSC has a forward P/E of 34.16. We also note that BSET has a PEG ratio of 0.93. 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. WSC currently has a PEG ratio of 1.41.
Another notable valuation metric for BSET is its P/B ratio of 1.64. 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, WSC has a P/B of 3.12.
Based on these metrics and many more, BSET holds a Value grade of B, while WSC has a Value grade of C.
BSET sticks out from WSC in both our Zacks Rank and Style Scores models, so value investors will likely feel that BSET is the better option right now.
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Bassett Furniture Industries, Incorporated (BSET) : Free Stock Analysis Report
WillScot Mobile Mini Holdings Corp. (WSC) : Free Stock Analysis Report
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