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

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Investors looking for stocks in the Consumer Products - Discretionary sector might want to consider either Lifetime Brands (LCUT - Free Report) or Prestige Brands (PBH - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Lifetime Brands and Prestige Brands are sporting Zacks Ranks of #1 (Strong Buy) and #4 (Sell), respectively, right now. Investors should feel comfortable knowing that LCUT likely has seen a stronger improvement to its earnings outlook than PBH has recently. But this is just one factor that value investors are interested in.

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 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 7.95, while PBH has a forward P/E of 13.69. We also note that LCUT has a PEG ratio of 0.57. 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. PBH currently has a PEG ratio of 1.71.

Another notable valuation metric for LCUT is its P/B ratio of 0.45. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, PBH has a P/B of 2.03.

Based on these metrics and many more, LCUT holds a Value grade of A, while PBH has a Value grade of C.

LCUT is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that LCUT is likely the superior value option right now.


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

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