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LCUT vs. HLN: 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 Haleon PLC Sponsored ADR (HLN - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 and Haleon PLC Sponsored ADR are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, 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. However, value investors will care about much more than just this.

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.

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 11.80, while HLN has a forward P/E of 16.50. We also note that LCUT has a PEG ratio of 0.84. 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. HLN currently has a PEG ratio of 2.10.

Another notable valuation metric for LCUT is its P/B ratio of 1. 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, HLN has a P/B of 1.89.

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

LCUT stands above HLN 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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