Investors with an interest in Consumer Products - Discretionary stocks have likely encountered both Lifetime Brands (LCUT) and Haleon PLC Sponsored ADR (HLN). 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 and Haleon PLC Sponsored ADR are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that LCUT likely has seen a stronger improvement to its earnings outlook than HLN has recently. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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 9.48, while HLN has a forward P/E of 16.31. We also note that LCUT has a PEG ratio of 0.68. 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 2.07.
Another notable valuation metric for LCUT is its P/B ratio of 0.8. 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 1.86.
These metrics, and several others, help LCUT earn a Value grade of A, while HLN has been given a Value grade of C.
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.
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Haleon PLC Sponsored ADR (HLN) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
