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BSET vs. WSC: Which Stock Is the Better Value Option?

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Investors with an interest in Furniture stocks have likely encountered both Bassett Furniture (BSET - Free Report) and WillScot (WSC - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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.

Bassett Furniture and WillScot are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), 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. But this is only part of the picture for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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 17.48, while WSC has a forward P/E of 33.59. We also note that BSET has a PEG ratio of 1.09. 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 1.76.

Another notable valuation metric for BSET is its P/B ratio of 1.64. 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, WSC has a P/B of 2.95.

Based on these metrics and many more, BSET holds a Value grade of B, while WSC has 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.


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

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

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