Lifetime Brands (LCUT) vs. Its Competitors Critical Review

Lifetime Brands (NASDAQ:LCUT) is one of 47 public companies in the “CONSM PD – MISC DIS” industry, but how does it weigh in compared to its peers? We will compare Lifetime Brands to similar businesses based on the strength of its profitability, analyst recommendations, institutional ownership, earnings, dividends, valuation and risk.

Profitability

This table compares Lifetime Brands and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lifetime Brands	-4.16%	4.66%	1.62%
Lifetime Brands Competitors	-11.06%	-5.41%	-1.03%

Volatility & Risk

Lifetime Brands has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500. Comparatively, Lifetime Brands’ peers have a beta of -0.32, suggesting that their average stock price is 132% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Lifetime Brands and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lifetime Brands	1	1	1	1	2.50
Lifetime Brands Competitors	290	1066	1055	49	2.35

Lifetime Brands currently has a consensus price target of $4.25, indicating a potential downside of 21.59%. As a group, “CONSM PD – MISC DIS” companies have a potential upside of 26.87%. Given Lifetime Brands’ peers higher probable upside, analysts plainly believe Lifetime Brands has less favorable growth aspects than its peers.

Valuation & Earnings

This table compares Lifetime Brands and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Lifetime Brands	$647.93 million	-$26.94 million	-4.37
Lifetime Brands Competitors	$2.79 billion	$76.96 million	-0.69

Lifetime Brands’ peers have higher revenue and earnings than Lifetime Brands. Lifetime Brands is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Dividends

Lifetime Brands pays an annual dividend of $0.17 per share and has a dividend yield of 3.1%. Lifetime Brands pays out -13.7% of its earnings in the form of a dividend. As a group, “CONSM PD – MISC DIS” companies pay a dividend yield of 3.2% and pay out 64.3% of their earnings in the form of a dividend.

Insider & Institutional Ownership

40.6% of Lifetime Brands shares are owned by institutional investors. Comparatively, 40.3% of shares of all “CONSM PD – MISC DIS” companies are owned by institutional investors. 43.2% of Lifetime Brands shares are owned by company insiders. Comparatively, 21.2% of shares of all “CONSM PD – MISC DIS” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Lifetime Brands beats its peers on 9 of the 15 factors compared.

Lifetime Brands Company Profile

Lifetime Brands, Inc. designs, sources, and sells branded kitchenware, tableware, and other products for use in the home in the worldwide. The company provides kitchenware products, including kitchen tools and gadgets, cutlery, kitchen scales, thermometers, cutting boards, shears, cookware, pantryware, spice racks, and bakeware; and tableware products comprising dinnerware, stemware, flatware, and giftware. It also provides home solutions, such as thermal beverageware, bath scales, weather and outdoor household, food storage, neoprene travel, and home décor products. The company owns or licenses various brands, including the Farberware, Mikasa, Taylor, KitchenAid, Pfaltzgraff, BUILT NY, Rabbit, Kamenstein, S’well, and Fred & Friends. It serves mass market merchants, specialty stores, department stores, warehouse clubs, grocery stores, off-price retailers, food service distributors, food and beverage outlets, and e-commerce. The company sells its products directly, as well as through its retail websites. Lifetime Brands, Inc. was founded in 1945 and is headquartered in Garden City, New York.