Lifetime Brands (NASDAQ:LCUT) and Helen of Troy Limited (HELE) Critical Analysis
Lifetime Brands (NASDAQ: LCUT) and Helen of Troy Limited (NASDAQ:HELE) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitabiliy, risk, institutional ownership, dividends, analyst recommendations, valuation and earnings.
Earnings and Valuation
This table compares Lifetime Brands and Helen of Troy Limited’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Lifetime Brands||$595.05 million||0.48||$46.06 million||$1.27||15.43|
|Helen of Troy Limited||$1.55 billion||1.73||$223.38 million||$4.59||21.41|
Helen of Troy Limited has higher revenue and earnings than Lifetime Brands. Lifetime Brands is trading at a lower price-to-earnings ratio than Helen of Troy Limited, indicating that it is currently the more affordable of the two stocks.
Lifetime Brands pays an annual dividend of $0.17 per share and has a dividend yield of 0.9%. Helen of Troy Limited does not pay a dividend. Lifetime Brands pays out 13.4% of its earnings in the form of a dividend.
This table compares Lifetime Brands and Helen of Troy Limited’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Helen of Troy Limited||8.23%||17.70%||9.70%|
Insider and Institutional Ownership
55.5% of Lifetime Brands shares are held by institutional investors. Comparatively, 90.5% of Helen of Troy Limited shares are held by institutional investors. 21.8% of Lifetime Brands shares are held by insiders. Comparatively, 0.6% of Helen of Troy Limited shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Volatility and Risk
Lifetime Brands has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, Helen of Troy Limited has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500.
This is a breakdown of current recommendations and price targets for Lifetime Brands and Helen of Troy Limited, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Helen of Troy Limited||0||2||2||0||2.50|
Lifetime Brands currently has a consensus target price of $19.00, indicating a potential downside of 3.06%. Helen of Troy Limited has a consensus target price of $102.00, indicating a potential upside of 3.82%. Given Helen of Troy Limited’s higher probable upside, analysts plainly believe Helen of Troy Limited is more favorable than Lifetime Brands.
Helen of Troy Limited beats Lifetime Brands on 12 of the 16 factors compared between the two stocks.
About Lifetime Brands
Lifetime Brands, Inc. designs, sources and sells branded kitchenware, tableware and other products used in the home. The Company operates through three segments: U.S. Wholesale, International and Retail Direct. In the U.S. Wholesale segment, the Company designs, markets and distributes its products to retailers and distributors. In the International segment, the Company includes certain business operations that are conducted outside the United States. In the Retail Direct segment, it markets and sells a limited selection of its products through its Pfaltzgraff, Mikasa, Built NY, Fred & Friends and Lifetime Sterling Internet Websites. Its product categories include two categories of products that people use to prepare, serve and consume foods: including Kitchenware (kitchen tools and gadgets, cutting boards and bakeware) and Tableware (stemware, flatware and giftware). Its Home Solutions category includes other products used in the home (thermal beverageware and food storage).
About Helen of Troy Limited
Helen Of Troy Limited is a global consumer products company that offers a range of solutions for its customers through a range of brands. The Company is a global designer, developer, importer, marketer and distributor of a portfolio of brand-name consumer products. The Company has four segments. The Housewares segment provides a range of consumer products for the home. The Health & Home segment focuses on healthcare devices, such as thermometers, humidifiers, blood pressure monitors and heating pads; water filtration systems, and small home appliances, such as portable heaters, fans, air purifiers, and insect control devices. The Nutritional Supplements segment is a provider of branded vitamins, minerals and supplements, as well as other health products. The Beauty segment’s products include electric hair care, beauty care and wellness appliances; grooming tools and accessories, and liquid-, solid- and powder-based personal care and grooming products.
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