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

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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 stocks offers value investors a better bang for their buck right now? We'll need to 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

American Woodmark and WillScot are sporting Zacks Ranks of #1 (Strong Buy) and #4 (Sell), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that AMWD has an improving earnings outlook. However, value investors will care about much more than just this.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

AMWD currently has a forward P/E ratio of 11.48, while WSC has a forward P/E of 27.55. We also note that AMWD has a PEG ratio of 0.88. 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 1.52.

Another notable valuation metric for AMWD 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 6.24.

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

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 >>

American Woodmark Corporation (AMWD) - free report >>

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