FLXS vs. WSC: Which Stock Is the Better Value Option?
Investors interested in Furniture stocks are likely familiar with Flexsteel Industries (FLXS) and WillScot (WSC). But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Flexsteel Industries has a Zacks Rank of #1 (Strong Buy), while WillScot has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that FLXS is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.
FLXS currently has a forward P/E ratio of 11.49, while WSC has a forward P/E of 34.03. We also note that FLXS has a PEG ratio of 0.96. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. WSC currently has a PEG ratio of 1.20.
Another notable valuation metric for FLXS is its P/B ratio of 0.58. 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 5.73.
Based on these metrics and many more, FLXS holds a Value grade of A, while WSC has a Value grade of D.
FLXS has seen stronger estimate revision activity and sports more attractive valuation metrics than WSC, so it seems like value investors will conclude that FLXS is the superior option right now.
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Flexsteel Industries, Inc. (FLXS) : Free Stock Analysis Report
WillScot Mobile Mini Holdings Corp. (WSC) : Free Stock Analysis Report
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