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BSET vs. WSC: Which Stock Is the Better Value Option?

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Investors interested in stocks from the Furniture sector have probably already heard of Bassett Furniture (BSET - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, Bassett Furniture has a Zacks Rank of #2 (Buy), while WillScot has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that BSET likely has seen a stronger improvement to its earnings outlook than WSC has recently. But this is just one piece of the puzzle 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 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 11.15, while WSC has a forward P/E of 39.35. We also note that BSET has a PEG ratio of 0.70. 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 1.51.

Another notable valuation metric for BSET is its P/B ratio of 1.43. 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 3.13.

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


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

Bassett Furniture Industries, Incorporated (BSET) - free report >>

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