Investors interested in Consumer Products - Discretionary stocks are likely familiar with Lifetime Brands (LCUT) and Prestige Brands (PBH). 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Lifetime Brands has a Zacks Rank of #1 (Strong Buy), while Prestige Brands has a Zacks Rank of #2 (Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that LCUT is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
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 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.
LCUT currently has a forward P/E ratio of 13.11, while PBH has a forward P/E of 15.53. We also note that LCUT has a PEG ratio of 0.94. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. PBH currently has a PEG ratio of 3.88.
Another notable valuation metric for LCUT is its P/B ratio of 1.66. 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, PBH has a P/B of 2.08.
These are just a few of the metrics contributing to LCUT's Value grade of A and PBH's Value grade of C.
LCUT stands above PBH thanks to its solid earnings outlook, and based on these valuation figures, we also feel that LCUT is the superior value option right now.
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Lifetime Brands, Inc. (LCUT) : Free Stock Analysis Report
Prestige Consumer Healthcare Inc. (PBH) : Free Stock Analysis Report
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