Back to top

Image: Bigstock

BSET vs. WSC: Which Stock Should Value Investors Buy Now?

Read MoreHide Full Article

Investors interested in Furniture stocks are likely familiar with 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.

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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Bassett Furniture has a Zacks Rank of #1 (Strong Buy), while WillScot has a Zacks Rank of #3 (Hold) 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 just one factor that value investors are interested in.

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.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

BSET currently has a forward P/E ratio of 9.87, while WSC has a forward P/E of 25.14. We also note that BSET has a PEG ratio of 0.62. 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 0.95.

Another notable valuation metric for BSET is its P/B ratio of 1.14. 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 3.74.

These metrics, and several others, help BSET earn a Value grade of B, while WSC has been given 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


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

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

Published in