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

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Investors interested in Consumer Products - Discretionary stocks are likely familiar with Lifetime Brands (LCUT - Free Report) and Prestige Brands (PBH - Free Report) . 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 and Prestige Brands are sporting Zacks Ranks of #1 (Strong Buy) and #2 (Buy), respectively, 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 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 12.39, while PBH has a forward P/E of 13.72. We also note that LCUT has a PEG ratio of 0.88. 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. PBH currently has a PEG ratio of 3.43.

Another notable valuation metric for LCUT is its P/B ratio of 1.57. 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, PBH has a P/B of 1.93.

These are just a few of the metrics contributing to LCUT's Value grade of A and PBH's 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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Prestige Consumer Healthcare Inc. (PBH) - free report >>

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