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BSET or WSC: Which Is the Better Value Stock Right Now?

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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 is more attractive to value investors? We'll need to take a closer look to find out.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Bassett Furniture and WillScot are sporting Zacks Ranks of #1 (Strong Buy) and #4 (Sell), respectively, right now. 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 15.16, while WSC has a forward P/E of 32.50. We also note that BSET has a PEG ratio of 0.95. 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 1.16.

Another notable valuation metric for BSET is its P/B ratio of 1.43. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, WSC has a P/B of 2.90.

These are just a few of the metrics contributing to BSET's Value grade of B and WSC's Value grade of C.

BSET stands above WSC thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BSET is the superior value option right now.


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WillScot Mobile Mini Holdings Corp. (WSC) - free report >>

Bassett Furniture Industries, Incorporated (BSET) - free report >>

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