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

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.

Right now, Lifetime Brands is sporting a Zacks Rank of #1 (Strong Buy), while SharkNinja, Inc. has a Zacks Rank of #3 (Hold). 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. However, value investors will care about much more than just this.

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.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

LCUT currently has a forward P/E ratio of 9.49, while SN has a forward P/E of 17.33. We also note that LCUT has a PEG ratio of 0.68. 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. SN currently has a PEG ratio of 1.33.

Another notable valuation metric for LCUT is its P/B ratio of 0.65. 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, SN has a P/B of 5.5.

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

LCUT stands above SN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that LCUT is the superior value option right now.

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