Lifetime Brands (NASDAQ: LCUT) and Stanley Black & Decker (NYSE:SWK) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, earnings and valuation.
Lifetime Brands pays an annual dividend of $0.17 per share and has a dividend yield of 1.6%. Stanley Black & Decker pays an annual dividend of $2.52 per share and has a dividend yield of 1.8%. Lifetime Brands pays out 23.9% of its earnings in the form of a dividend. Stanley Black & Decker pays out 33.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Stanley Black & Decker has raised its dividend for 50 consecutive years. Stanley Black & Decker is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings & Valuation
This table compares Lifetime Brands and Stanley Black & Decker’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Lifetime Brands||$579.48 million||0.38||$2.15 million||$0.71||15.00|
|Stanley Black & Decker||$12.75 billion||1.73||$1.23 billion||$7.45||19.22|
Stanley Black & Decker has higher revenue and earnings than Lifetime Brands. Lifetime Brands is trading at a lower price-to-earnings ratio than Stanley Black & Decker, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Lifetime Brands has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500. Comparatively, Stanley Black & Decker has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500.
This table compares Lifetime Brands and Stanley Black & Decker’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Stanley Black & Decker||7.63%||15.65%||5.93%|
This is a summary of recent ratings for Lifetime Brands and Stanley Black & Decker, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Stanley Black & Decker||0||2||15||0||2.88|
Stanley Black & Decker has a consensus target price of $181.33, suggesting a potential upside of 26.66%. Given Stanley Black & Decker’s higher possible upside, analysts clearly believe Stanley Black & Decker is more favorable than Lifetime Brands.
Institutional & Insider Ownership
48.0% of Lifetime Brands shares are held by institutional investors. Comparatively, 83.3% of Stanley Black & Decker shares are held by institutional investors. 21.8% of Lifetime Brands shares are held by insiders. Comparatively, 0.7% of Stanley Black & Decker shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Stanley Black & Decker beats Lifetime Brands on 12 of the 17 factors compared between the two stocks.
About Lifetime Brands
Lifetime Brands, Inc. designs, sources, and sells branded kitchenware, tableware, and other products for use in the home in the United States and internationally. The company operates through three segments: U.S. Wholesale, International, and Retail Direct. It offers kitchenware products, including kitchen tools and gadgets, cutlery, cutting boards, shears, cookware, pantry ware, spice racks, and bakeware, as well as novelty kitchen tools, tableware accessories, party goods, personal accessories, and other products; and tableware products comprising dinnerware, stemware, flatware, and giftware. The company also provides home solutions, which comprise other products that are used in the home, such as thermal beverageware, food storage, and home décor, as well as neoprene travel products consisting of bags, totes, cases, and sleeves; and sterling silver and pewter giftware products. In addition, it owns or licenses various brands, including Farberware, Mikasa, KitchenAid, Pfaltzgraff, KitchenCraft, Fitz and Floyd, Sabatier, Kamenstein, BUILT NY, MasterClass, Fred, Amco Houseworks, Chicago Metallic, Swing-A-Way, and Copco brands; and offers tableware products under the La Cafetière and Randwyck private label brands. The company serves mass merchants, specialty stores, national chains, department stores, warehouse clubs, supermarkets, off-price retailers, pharmacies, home and garden centers, and Internet retailers, as well as directly to consumers through its Pfaltzgraff, Mikasa, Fred and Friends, Built NY, Fitz and Floyd, Housewares Deals, and Lifetime Sterling Websites. Lifetime Brands, Inc. was founded in 1945 and is headquartered in Garden City, New York.
About Stanley Black & Decker
Stanley Black & Decker, Inc. provides tools and storage, engineered fastening and infrastructure, and security solutions worldwide. The company's Tools & Storage segment offers professional products, including corded and cordless electric power tools and equipment, drills, impact wrenches and drivers, grinders, saws, routers, and sanders, as well as pneumatic tools and fasteners, including nail guns, nails, staplers and staples, and concrete and masonry anchors; and consumer products, such as lawn and garden products comprising hedge and string trimmers, lawn mowers, and edgers and related accessories, as well as home products, such as hand-held vacuums, paint tools, and cleaning appliances. It also offers hand tools, including planes, hammers, demolition tools, clamps, vises, knives, chisels, and industrial and automotive tools, as well as measuring, leveling, and layout tools; power tool accessories; and storage products. The company's Industrial segment sells engineered fastening products and systems, which include blind rivets and tools, blind inserts and tools, drawn arc weld studs and systems, engineered plastic and mechanical fasteners, self-piercing riveting systems, precision nut running systems, micro fasteners, and high-strength structural fasteners; sells and rents custom pipe handling, joint welding, and coating equipment; provides pipeline inspection services; and sells hydraulic tools and accessories. Its Security segment provides alarm and fire alarm monitoring, video surveillance, systems integration, and system maintenance solutions; sells healthcare solutions, which include asset tracking, wander and fall management, and emergency call products, as well as infant, pediatric, and patient protection products; and sells automatic doors. The company was formerly known as The Stanley Works and changed its name to Stanley Black & Decker, Inc. in March 2010. The company was founded in 1843 and is headquartered in New Britain, Connecticut.
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