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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 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 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 #3 (Hold) 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 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 4.51, while HLN has a forward P/E of 16.30. We also note that LCUT has a PEG ratio of 0.32. 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 2.09.

Another notable valuation metric for LCUT is its P/B ratio of 0.98. 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, HLN has a P/B of 1.85.

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

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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