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WillScot Holdings Corporation (WSC) - free report >>
Bassett Furniture Industries, Incorporated (BSET) - free report >>
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WillScot Holdings Corporation (WSC) - free report >>
Bassett Furniture Industries, Incorporated (BSET) - free report >>
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BSET vs. WSC: Which Stock Is the Better Value Option?
Investors with an interest in Furniture stocks have likely encountered both Bassett Furniture (BSET - 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 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. However, value investors will care about much more than just this.
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 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 16.23, while WSC has a forward P/E of 35.34. We also note that BSET has a PEG ratio of 1.01. 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 1.86.
Another notable valuation metric for BSET is its P/B ratio of 1.53. 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 3.10.
Based on these metrics and many more, BSET holds a Value grade of B, while WSC has a Value grade of C.
BSET stands above WSC thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BSET is the superior value option right now.