See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
WillScot Holdings Corporation (WSC) - free report >>
Bassett Furniture Industries, Incorporated (BSET) - free report >>
We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
WillScot Holdings Corporation (WSC) - free report >>
Bassett Furniture Industries, Incorporated (BSET) - free report >>
Image: Bigstock
BSET vs. WSC: Which Stock Should Value Investors Buy Now?
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.