Back to top

Image: Bigstock

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

Read MoreHide Full Article

Investors interested in Consumer Products - Discretionary stocks are likely familiar with Lifetime Brands (LCUT - Free Report) and 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.

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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Lifetime Brands and Haleon PLC Sponsored ADR are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, 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 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.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

LCUT currently has a forward P/E ratio of 4.54, while HLN has a forward P/E of 17.92. We also note that LCUT has a PEG ratio of 0.32. 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 2.04.

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 2.03.

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

LCUT sticks out from HLN in both our Zacks Rank and Style Scores models, so value investors will likely feel that LCUT is the better option right now.

Published in