Back to top

Image: Bigstock

BSET or WSC: Which Is the Better Value Stock Right 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 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, both Bassett Furniture and WillScot are sporting a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one piece of the puzzle for value investors.

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.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

BSET currently has a forward P/E ratio of 8.71, while WSC has a forward P/E of 30.70. We also note that BSET has a PEG ratio of 0.54. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. WSC currently has a PEG ratio of 1.04.

Another notable valuation metric for BSET is its P/B ratio of 1. 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 5.20.

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

Both BSET and WSC are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that BSET is the superior value 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