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WillScot Holdings Corporation (WSC) - free report >>
Bassett Furniture Industries, Incorporated (BSET) - free report >>
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WillScot Holdings Corporation (WSC) - free report >>
Bassett Furniture Industries, Incorporated (BSET) - free report >>
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BSET vs. WSC: Which Stock Is the Better Value Option?
Investors interested in Furniture stocks are likely familiar with Bassett Furniture (BSET - Free Report) and WillScot (WSC - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Bassett Furniture has a Zacks Rank of #1 (Strong Buy), while WillScot has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that BSET has an improving earnings outlook. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
BSET currently has a forward P/E ratio of 13.89, while WSC has a forward P/E of 27.32. We also note that BSET has a PEG ratio of 0.87. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. WSC currently has a PEG ratio of 0.97.
Another notable valuation metric for BSET is its P/B ratio of 1.25. 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 2.55.
These metrics, and several others, help BSET earn a Value grade of B, while WSC has been given a Value grade of C.
BSET has seen stronger estimate revision activity and sports more attractive valuation metrics than WSC, so it seems like value investors will conclude that BSET is the superior option right now.