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LCUT vs. VZIO: 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 VIZIO Holding Corp. (VZIO - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Lifetime Brands has a Zacks Rank of #2 (Buy), while VIZIO Holding Corp. has a Zacks Rank of #5 (Strong Sell). This means that LCUT's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture 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.

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 12.90, while VZIO has a forward P/E of 108.81. We also note that LCUT has a PEG ratio of 0.92. 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. VZIO currently has a PEG ratio of 4.35.

Another notable valuation metric for LCUT is its P/B ratio of 0.93. 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, VZIO has a P/B of 4.70.

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

LCUT has seen stronger estimate revision activity and sports more attractive valuation metrics than VZIO, so it seems like value investors will conclude that LCUT is the superior option right now.


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Lifetime Brands, Inc. (LCUT) - free report >>

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