AMWD or WSC: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Furniture sector might want to consider either American Woodmark (AMWD) or WillScot (WSC). But which of these two companies is the best option for those looking for undervalued stocks? 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
American Woodmark and WillScot are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that AMWD likely has seen a stronger improvement to its earnings outlook than WSC has recently. 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 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 10.86, while WSC has a forward P/E of 23.19. We also note that AMWD has a PEG ratio of 0.84. 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 1.03.
Another notable valuation metric for AMWD is its P/B ratio of 1.37. 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 5.59.
Based on these metrics and many more, AMWD holds a Value grade of A, while WSC has a Value grade of C.
AMWD stands above WSC thanks to its solid earnings outlook, and based on these valuation figures, we also feel that AMWD is the superior value 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
