AMWD vs. WSC: Which Stock Should Value Investors Buy Now?
Investors interested in Furniture stocks are likely familiar with American Woodmark (AMWD) and 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
American Woodmark and WillScot are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. This means that AMWD's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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.
AMWD currently has a forward P/E ratio of 11.31, while WSC has a forward P/E of 24.43. We also note that AMWD has a PEG ratio of 0.87. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. WSC currently has a PEG ratio of 1.08.
Another notable valuation metric for AMWD is its P/B ratio of 1.43. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, WSC has a P/B of 5.89.
Based on these metrics and many more, AMWD holds a Value grade of A, while WSC has 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
