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

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Investors looking for stocks in the Furniture sector might want to consider either American Woodmark (AMWD - Free Report) or WillScot (WSC - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

American Woodmark has a Zacks Rank of #1 (Strong Buy), while WillScot has a Zacks Rank of #3 (Hold) 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. 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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

AMWD currently has a forward P/E ratio of 11.42, while WSC has a forward P/E of 24.51. 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 1.09.

Another notable valuation metric for AMWD 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 6.06.

These metrics, and several others, help AMWD earn a Value grade of A, while WSC has been given 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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WillScot Mobile Mini Holdings Corp. (WSC) - free report >>

American Woodmark Corporation (AMWD) - free report >>

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