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BSET vs. WSC: Which Stock Is the Better Value Option?

Zacks Equity Research
·2-min read

Investors interested in Furniture stocks are likely familiar with Bassett Furniture (BSET) and WillScot (WSC). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 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.

Bassett Furniture has a Zacks Rank of #1 (Strong Buy), while WillScot has a Zacks Rank of #3 (Hold) right now. This means that BSET's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle 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.

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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.

BSET currently has a forward P/E ratio of 9.31, while WSC has a forward P/E of 29.75. We also note that BSET has a PEG ratio of 0.58. 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 1.12.

Another notable valuation metric for BSET is its P/B ratio of 1.07. 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 4.43.

Based on these metrics and many more, BSET holds a Value grade of B, while WSC has a Value grade of C.

BSET has seen stronger estimate revision activity and sports more attractive valuation metrics than WSC, so it seems like value investors will conclude that BSET is the superior option right now.


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Bassett Furniture Industries, Incorporated (BSET) : Free Stock Analysis Report
 
WillScot Mobile Mini Holdings Corp. (WSC) : Free Stock Analysis Report
 
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Zacks Investment Research