AMWD or WSC: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Furniture sector have probably already heard of American Woodmark (AMWD) and WillScot (WSC). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, American Woodmark is sporting a Zacks Rank of #1 (Strong Buy), while WillScot has a Zacks Rank of #2 (Buy). 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.
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.
AMWD currently has a forward P/E ratio of 9.49, while WSC has a forward P/E of 23.87. We also note that AMWD has a PEG ratio of 0.73. 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 1.03.
Another notable valuation metric for AMWD is its P/B ratio of 1.39. 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 5.75.
Based on these metrics and many more, AMWD holds a Value grade of A, while WSC has a Value grade of C.
AMWD is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that AMWD is likely 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
