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AMWD or WSC: Which Is the Better Value Stock Right Now?

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Investors interested in Furniture stocks are likely familiar with American Woodmark (AMWD - Free Report) and WillScot (WSC - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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.

American Woodmark 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 AMWD has an improving earnings outlook. But this is just one factor that value investors are interested in.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.

AMWD currently has a forward P/E ratio of 10.69, while WSC has a forward P/E of 22.12. We also note that AMWD has a PEG ratio of 0.82. 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 1.01.

Another notable valuation metric for AMWD is its P/B ratio of 1.65. 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 7.04.

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

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


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

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