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LCUT vs. HLN: Which Stock Is the Better Value Option?

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Investors interested in stocks from the Consumer Products - Discretionary sector have probably already heard of Lifetime Brands (LCUT - Free Report) and Haleon PLC Sponsored ADR (HLN - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.

Lifetime Brands has a Zacks Rank of #1 (Strong Buy), while Haleon PLC Sponsored ADR has a Zacks Rank of #4 (Sell) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that LCUT has an improving earnings outlook. But this is just one factor that value investors are interested in.

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 11.69, while HLN has a forward P/E of 17.03. We also note that LCUT has a PEG ratio of 0.83. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. HLN currently has a PEG ratio of 2.17.

Another notable valuation metric for LCUT is its P/B ratio of 0.99. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, HLN has a P/B of 1.91.

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

LCUT is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that LCUT is likely the superior value option right now.

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