LCUT or VZIO: Which Is the Better Value Stock Right Now?
Investors with an interest in Consumer Products - Discretionary stocks have likely encountered both Lifetime Brands (LCUT) and VIZIO Holding Corp. (VZIO). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 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.
Currently, Lifetime Brands has a Zacks Rank of #2 (Buy), while VIZIO Holding Corp. has a Zacks Rank of #3 (Hold). This means that LCUT'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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
LCUT currently has a forward P/E ratio of 8.93, while VZIO has a forward P/E of 145.38. We also note that LCUT has a PEG ratio of 0.64. 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. VZIO currently has a PEG ratio of 5.82.
Another notable valuation metric for LCUT is its P/B ratio of 0.52. 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, VZIO has a P/B of 2.68.
These are just a few of the metrics contributing to LCUT's Value grade of A and VZIO's Value grade of D.
LCUT stands above VZIO 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
VIZIO Holding Corp. (VZIO) : Free Stock Analysis Report
