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LCUT vs. SPB: Which Stock Should Value Investors Buy Now?

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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 Spectrum Brands (SPB - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, both Lifetime Brands and Spectrum Brands are holding a Zacks Rank of # 1 (Strong Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is only part of the picture for value investors.

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 8.66, while SPB has a forward P/E of 19.81. We also note that LCUT has a PEG ratio of 0.62. 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. SPB currently has a PEG ratio of 0.65.

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, SPB has a P/B of 1.21.

These metrics, and several others, help LCUT earn a Value grade of A, while SPB has been given a Value grade of C.

Both LCUT and SPB are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that LCUT is the superior value option right now.


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