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

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Investors interested in Consumer Products - Discretionary stocks are likely familiar with Lifetime Brands (LCUT - Free Report) and Hengan International Group Co., Ltd. Unsponsored ADR (HEGIY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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.

Lifetime Brands and Hengan International Group Co., Ltd. Unsponsored ADR are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, 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. But this is only part of the picture for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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 12.50, while HEGIY has a forward P/E of 17.28. We also note that LCUT has a PEG ratio of 0.83. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. HEGIY currently has a PEG ratio of 1.53.

Another notable valuation metric for LCUT is its P/B ratio of 0.62. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, HEGIY has a P/B of 3.34.

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

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


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Hengan International Group Co., Ltd. Unsponsored ADR (HEGIY) - free report >>

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