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LCUT vs. PBH: Which Stock Is the Better Value Option?

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Investors with an interest in Consumer Products - Discretionary stocks have likely encountered both Lifetime Brands (LCUT - Free Report) and Prestige Brands (PBH - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Lifetime Brands and Prestige Brands are sporting Zacks Ranks of #1 (Strong Buy) and #2 (Buy), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that LCUT has an improving earnings outlook. 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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

LCUT currently has a forward P/E ratio of 13.30, while PBH has a forward P/E of 14.05. We also note that LCUT has a PEG ratio of 0.95. 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 3.51.

Another notable valuation metric for LCUT is its P/B ratio of 1.68. 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 1.97.

These are just a few of the metrics contributing to LCUT's Value grade of A and PBH's Value grade of C.

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


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Prestige Consumer Healthcare Inc. (PBH) - free report >>

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