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LCUT vs. VZIO: 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 VIZIO Holding Corp. (VZIO - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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.

Lifetime Brands has a Zacks Rank of #2 (Buy), while VIZIO Holding Corp. has a Zacks Rank of #5 (Strong Sell) right now. 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 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 14.48, while VZIO has a forward P/E of 59.49. We also note that LCUT has a PEG ratio of 1.03. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. VZIO currently has a PEG ratio of 2.38.

Another notable valuation metric for LCUT is its P/B ratio of 1.04. 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, VZIO has a P/B of 4.57.

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

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


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Lifetime Brands, Inc. (LCUT) - free report >>

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