AMWD vs. WSC: Which Stock Is the Better Value Option?
Investors with an interest in Furniture stocks have likely encountered both American Woodmark (AMWD) and WillScot (WSC). 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.
Right now, American Woodmark is sporting a Zacks Rank of #1 (Strong Buy), while WillScot has a Zacks Rank of #3 (Hold). 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 only part of the picture for value investors.
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.
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 10.46, while WSC has a forward P/E of 23.95. We also note that AMWD has a PEG ratio of 0.80. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. WSC currently has a PEG ratio of 1.06.
Another notable valuation metric for AMWD is its P/B ratio of 1.41. 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 5.77.
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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American Woodmark Corporation (AMWD) : Free Stock Analysis Report
WillScot Mobile Mini Holdings Corp. (WSC) : Free Stock Analysis Report
