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KW or WSC: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Real Estate - Operations sector have probably already heard of Kennedy-Wilson (KW - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Kennedy-Wilson is sporting a Zacks Rank of #2 (Buy), while WillScot has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that KW is likely seeing its earnings outlook improve to a greater extent. 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.
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.
KW currently has a forward P/E ratio of 3.73, while WSC has a forward P/E of 20.86. We also note that KW has a PEG ratio of 0.65. 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 1.27.
Another notable valuation metric for KW is its P/B ratio of 1.65. 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 5.76.
These are just a few of the metrics contributing to KW's Value grade of B and WSC's 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 or WSC: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Real Estate - Operations sector have probably already heard of Kennedy-Wilson (KW - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Kennedy-Wilson is sporting a Zacks Rank of #2 (Buy), while WillScot has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that KW is likely seeing its earnings outlook improve to a greater extent. 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.
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.
KW currently has a forward P/E ratio of 3.73, while WSC has a forward P/E of 20.86. We also note that KW has a PEG ratio of 0.65. 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 1.27.
Another notable valuation metric for KW is its P/B ratio of 1.65. 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 5.76.
These are just a few of the metrics contributing to KW's Value grade of B and WSC's 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.