Yahoo Finance LCUT or VZIO: Which Is the Better Value Stock Right Now?
Investors with an interest in Consumer Products - Discretionary stocks have likely encountered both Lifetime Brands (LCUT) and VIZIO Holding Corp. (VZIO). 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.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Lifetime Brands and VIZIO Holding Corp. are sporting Zacks Ranks of #2 (Buy) and #5 (Strong Sell), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that LCUT has an improving earnings outlook. However, value investors will care about much more than just this.
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 14.75, while VZIO has a forward P/E of 75.29. We also note that LCUT has a PEG ratio of 1.05. 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 3.01.
Another notable valuation metric for LCUT is its P/B ratio of 1.06. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, VZIO has a P/B of 4.63.
These metrics, and several others, help LCUT earn a Value grade of A, while VZIO has been given a Value grade of F.
LCUT sticks out from VZIO 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
VIZIO Holding Corp. (VZIO) : Free Stock Analysis Report
