LCUT or PBH: Which Is the Better Value Stock Right Now?
LCUT vs. PBH: Which Stock Is the Better Value Option?
Investors interested in stocks from the Consumer Products - Discretionary sector have probably already heard of Lifetime Brands (LCUT) and Prestige Brands (PBH). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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 has a Zacks Rank of #1 (Strong Buy), while Prestige Brands has a Zacks Rank of #2 (Buy) right now. Investors should feel comfortable knowing that LCUT likely has seen a stronger improvement to its earnings outlook than PBH has recently. 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
LCUT currently has a forward P/E ratio of 13.09, while PBH has a forward P/E of 14.41. We also note that LCUT has a PEG ratio of 0.93. 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. PBH currently has a PEG ratio of 3.60.
Another notable valuation metric for LCUT is its P/B ratio of 1.65. 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, PBH has a P/B of 2.03.
These metrics, and several others, help LCUT earn a Value grade of A, while PBH has been given a Value grade of C.
LCUT sticks out from PBH in both our Zacks Rank and Style Scores models, so value investors will likely feel that LCUT is the better option right now.
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Lifetime Brands, Inc. (LCUT): Free Stock Analysis Report
Prestige Consumer Healthcare Inc. (PBH): Free Stock Analysis Report
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