Investors interested in stocks from the Furniture sector have probably already heard of Bassett Furniture (BSET Quick QuoteBSET - Free Report) and WillScot (WSC Quick QuoteWSC - 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 and WillScot are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. This means that BSET's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

BSET currently has a forward P/E ratio of 15.05, while WSC has a forward P/E of 31.57. We also note that BSET has a PEG ratio of 0.94. 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 1.13.

Another notable valuation metric for BSET is its P/B ratio of 1.42. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, WSC has a P/B of 2.82.

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

BSET is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that BSET is likely the superior value option right now.