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LCUT or HLN: Which Is the Better Value Stock Right 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 Haleon PLC Sponsored ADR (HLN - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 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.

Right now, Lifetime Brands is sporting a Zacks Rank of #1 (Strong Buy), while Haleon PLC Sponsored ADR has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that LCUT likely has seen a stronger improvement to its earnings outlook than HLN has recently. But this is only part of the picture for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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 12.18, while HLN has a forward P/E of 16.36. We also note that LCUT has a PEG ratio of 0.87. 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. HLN currently has a PEG ratio of 2.08.

Another notable valuation metric for LCUT is its P/B ratio of 1.03. 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, HLN has a P/B of 1.87.

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

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

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