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KW vs. WSC: Which Stock Is the Better Value Option?
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Investors interested in Real Estate - Operations stocks are likely familiar with Kennedy-Wilson (KW - Free Report) and 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Kennedy-Wilson has a Zacks Rank of #2 (Buy), while WillScot has a Zacks Rank of #4 (Sell). This means that KW's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.
KW currently has a forward P/E ratio of 3.45, while WSC has a forward P/E of 21.04. We also note that KW has a PEG ratio of 0.60. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. WSC currently has a PEG ratio of 1.30.
Another notable valuation metric for KW is its P/B ratio of 1.53. 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 5.81.
These metrics, and several others, help KW earn a Value grade of B, while WSC has been given a Value grade of C.
KW stands above WSC thanks to its solid earnings outlook, and based on these valuation figures, we also feel that KW is the superior value option right now.
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KW vs. WSC: Which Stock Is the Better Value Option?
Investors interested in Real Estate - Operations stocks are likely familiar with Kennedy-Wilson (KW - Free Report) and 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Kennedy-Wilson has a Zacks Rank of #2 (Buy), while WillScot has a Zacks Rank of #4 (Sell). This means that KW's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.
KW currently has a forward P/E ratio of 3.45, while WSC has a forward P/E of 21.04. We also note that KW has a PEG ratio of 0.60. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. WSC currently has a PEG ratio of 1.30.
Another notable valuation metric for KW is its P/B ratio of 1.53. 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 5.81.
These metrics, and several others, help KW earn a Value grade of B, while WSC has been given a Value grade of C.
KW stands above WSC thanks to its solid earnings outlook, and based on these valuation figures, we also feel that KW is the superior value option right now.