AMWD vs. WSC: Which Stock Is the Better Value Option?
Investors looking for stocks in the Furniture sector might want to consider either American Woodmark (AMWD) or WillScot (WSC). But which of these two stocks presents investors with the better value opportunity right now? Let's 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
American Woodmark has a Zacks Rank of #1 (Strong Buy), while WillScot has a Zacks Rank of #2 (Buy) 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 only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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 8.41, while WSC has a forward P/E of 22.43. We also note that AMWD 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 0.97.
Another notable valuation metric for AMWD is its P/B ratio of 1.23. 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 5.41.
These metrics, and several others, help AMWD earn a Value grade of A, while WSC has been given a Value grade of C.
AMWD has seen stronger estimate revision activity and sports more attractive valuation metrics than WSC, so it seems like value investors will conclude that AMWD is the superior option right now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Woodmark Corporation (AMWD) : Free Stock Analysis Report
WillScot Mobile Mini Holdings Corp. (WSC) : Free Stock Analysis Report
