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

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Investors interested in stocks from the Furniture sector have probably already heard of Bassett Furniture (BSET - Free Report) and WillScot (WSC - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Bassett Furniture and WillScot are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that BSET likely has seen a stronger improvement to its earnings outlook than WSC has recently. 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 20.40, while WSC has a forward P/E of 35.35. We also note that BSET has a PEG ratio of 1.27. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. WSC currently has a PEG ratio of 1.45.

Another notable valuation metric for BSET is its P/B ratio of 2.26. 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 3.05.

These are just a few of the metrics contributing to BSET's Value grade of B and WSC's 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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WillScot Mobile Mini Holdings Corp. (WSC) - free report >>

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

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