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

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Investors with an interest in Furniture stocks have likely encountered both Flexsteel Industries (FLXS - Free Report) and WillScot (WSC - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Flexsteel Industries has a Zacks Rank of #2 (Buy), while WillScot has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that FLXS is likely seeing its earnings outlook improve to a greater extent. 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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

FLXS currently has a forward P/E ratio of 10.29, while WSC has a forward P/E of 32.40. We also note that FLXS has a PEG ratio of 0.86. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. WSC currently has a PEG ratio of 1.19.

Another notable valuation metric for FLXS is its P/B ratio of 0.67. 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 5.28.

These metrics, and several others, help FLXS earn a Value grade of A, while WSC has been given a Value grade of C.

FLXS stands above WSC thanks to its solid earnings outlook, and based on these valuation figures, we also feel that FLXS is the superior value option right now.


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Flexsteel Industries, Inc. (FLXS) - free report >>

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

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