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

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Investors looking for stocks in the Real Estate - Operations sector might want to consider either Kennedy-Wilson (KW - Free Report) or WillScot (WSC - Free Report) . 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.

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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Right now, Kennedy-Wilson is sporting a Zacks Rank of #2 (Buy), while WillScot has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that KW 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 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.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

KW currently has a forward P/E ratio of 3.68, while WSC has a forward P/E of 22.61. We also note that KW has a PEG ratio of 0.64. 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 1.37.

Another notable valuation metric for KW is its P/B ratio of 1.63. 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 6.24.

These are just a few of the metrics contributing to KW's Value grade of B and WSC's Value grade of C.

KW stands above WSC thanks to its solid earnings outlook, and based on these valuation figures, we also feel that KW is the superior value option right now.


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WillScot Holdings Corporation (WSC) - free report >>

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