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AMWD vs. WSC: Which Stock Is the Better Value Option?
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Investors with an interest in Furniture stocks have likely encountered both American Woodmark (AMWD - Free Report) and 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.
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.
American Woodmark and WillScot are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, 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 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.
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.
AMWD currently has a forward P/E ratio of 10.54, while WSC has a forward P/E of 25.63. We also note that AMWD has a PEG ratio of 0.81. 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 1.42.
Another notable valuation metric for AMWD is its P/B ratio of 1.31. 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 6.09.
Based on these metrics and many more, AMWD holds a Value grade of B, while WSC has a Value grade of C.
AMWD sticks out from WSC in both our Zacks Rank and Style Scores models, so value investors will likely feel that AMWD is the better option right now.
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AMWD vs. WSC: Which Stock Is the Better Value Option?
Investors with an interest in Furniture stocks have likely encountered both American Woodmark (AMWD - Free Report) and 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.
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.
American Woodmark and WillScot are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, 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 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.
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.
AMWD currently has a forward P/E ratio of 10.54, while WSC has a forward P/E of 25.63. We also note that AMWD has a PEG ratio of 0.81. 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 1.42.
Another notable valuation metric for AMWD is its P/B ratio of 1.31. 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 6.09.
Based on these metrics and many more, AMWD holds a Value grade of B, while WSC has a Value grade of C.
AMWD sticks out from WSC in both our Zacks Rank and Style Scores models, so value investors will likely feel that AMWD is the better option right now.