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

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Investors looking for stocks in the Furniture sector might want to consider either American Woodmark (AMWD - Free Report) or 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.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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 #2 (Buy), while WillScot has a Zacks Rank of #3 (Hold) right now. This means that AMWD's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.

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.

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.

AMWD currently has a forward P/E ratio of 13.94, while WSC has a forward P/E of 68.48. We also note that AMWD has a PEG ratio of 1.55. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. WSC currently has a PEG ratio of 4.57.

Another notable valuation metric for AMWD is its P/B ratio of 2.62. 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 3.16.

Based on these metrics and many more, AMWD holds a Value grade of A, while WSC has a Value grade of F.

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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