Analyzing Spectrum Brands (NYSE:SPB) and Luvu Brands (OTCMKTS:LUVU)

Luvu Brands (OTCMKTS:LUVU) and Spectrum Brands (NYSE:SPB) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, profitability, earnings, institutional ownership, risk and analyst recommendations.

Analyst Ratings

This is a summary of current ratings and target prices for Luvu Brands and Spectrum Brands, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Luvu Brands	0	0	0	0	0.00
Spectrum Brands	0	3	3	0	2.50

Spectrum Brands has a consensus price target of $87.00, indicating a potential downside of 2.46%. Given Spectrum Brands’ stronger consensus rating and higher probable upside, analysts plainly believe Spectrum Brands is more favorable than Luvu Brands.

Volatility & Risk

Luvu Brands has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500. Comparatively, Spectrum Brands has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500.

Valuation and Earnings

This table compares Luvu Brands and Spectrum Brands”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Luvu Brands	$24.69 million	0.14	-$450,000.00	($0.01)	-4.40
Spectrum Brands	$2.81 billion	0.73	$99.70 million	$5.24	17.02

Spectrum Brands has higher revenue and earnings than Luvu Brands. Luvu Brands is trading at a lower price-to-earnings ratio than Spectrum Brands, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Luvu Brands and Spectrum Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Luvu Brands	-4.23%	-53.41%	-10.68%
Spectrum Brands	4.47%	8.23%	4.53%

Summary

Spectrum Brands beats Luvu Brands on 11 of the 12 factors compared between the two stocks.

About Luvu Brands

Luvu Brands, Inc. designs, manufactures, and markets various consumer lifestyle products worldwide. The company offers sensuality and intimacy products under the Liberator brand; and bed therapy products, which assistive in relieving medical conditions associated with acid reflux, surgery recovery, and chronic pain under the Avana brand. It also provides daybeds, sofas, and beanbags made from virgin and re-purposed polyurethane foam under the Jaxx brand. In addition, the company is involved in the purchase and resale of products to e-merchants, retailers, and e-commerce sites, as well as provision of contract manufacturing and fulfillment services. It markets its products through various websites comprising liberator.com, jaxxliving.com, and avanacomfort.com, as well as through distributors, retailers, and e-tailers across various channels of adult, mass market, drug, and specialty accounts. The company was formerly known as Liberator, Inc. and changed its name to Luvu Brands, Inc. in November 2015. Luvu Brands, Inc. was incorporated in 1999 and is headquartered in Atlanta, Georgia.

About Spectrum Brands

Spectrum Brands Holdings, Inc. operates as a branded consumer products and home essentials company in North America, Europe, the Middle East, Africa, and Asia-Pacific regions. It operates through three segments: Home and Personal Care; Global Pet Care; and Home and Garden. The Home and Personal Care segment provides home appliances under the Black & Decker, Russell Hobbs, George Foreman, PowerXL, Emeril Legasse, Copper Chef, Toastmaster, Juiceman, Farberware, and Breadman brands; and personal care products under the Remington brand. The Global Pet Care segment provides dog and cat chews, treats, wet and dry foods, dog and cat clean-up and food, training, health and grooming, indoor birds, and small animal food and care products under the Good'n'Fun, DreamBone, GOOD BOY, SmartBones, IAMS, EUKANUBA, Nature's Miracle, FURminator, Dingo, 8IN1, Meowee!, and Wild Harvest brands. This segment also offers aquarium kits, stand-alone tanks, and aquatics equipment and consumables under the Tetra, Marineland, Instant Ocean, GloFish, and OmegaSea brands. The Home and Garden segment provides outdoor insect and weed control solutions, and animal repellents under the Spectracide, Garden Safe, Liquid Fence, and EcoLogic brands; household pest control solutions under the Hot Shot, Black Flag, Real-Kill, Ultra Kill, The Ant Trap, and Rid-A-Bug brand names; household surface cleaning, maintenance, and restoration products, including bottled liquids, mops, wipes, and markers under the Rejuvenate brand name; and personal-use pesticides and insect repellent products under the Cutter and Repel brands. The company sells its products through retailers, e-commerce and online retailers, wholesalers, and distributors. Spectrum Brands Holdings, Inc. was founded in 1906 and is headquartered in Middleton, Wisconsin.