Lifetime Brands (NASDAQ:LCUT – Get Free Report) and LGI Homes (NASDAQ:LGIH – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, earnings, risk, dividends, institutional ownership, analyst recommendations and profitability.
Insider & Institutional Ownership
40.6% of Lifetime Brands shares are owned by institutional investors. Comparatively, 84.9% of LGI Homes shares are owned by institutional investors. 44.4% of Lifetime Brands shares are owned by insiders. Comparatively, 12.6% of LGI Homes shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Volatility & Risk
Lifetime Brands has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.Comparatively, LGI Homes has a beta of 1.83, suggesting that its share price is 83% more volatile than the S&P 500.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Lifetime Brands | -4.22% | 8.01% | 2.76% |
| LGI Homes | 4.22% | 3.80% | 1.98% |
Earnings & Valuation
This table compares Lifetime Brands and LGI Homes”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lifetime Brands | $647.93 million | 0.30 | -$26.94 million | ($1.27) | -6.78 |
| LGI Homes | $1.71 billion | 0.76 | $72.55 million | $3.05 | 18.39 |
LGI Homes has higher revenue and earnings than Lifetime Brands. Lifetime Brands is trading at a lower price-to-earnings ratio than LGI Homes, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Lifetime Brands and LGI Homes, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lifetime Brands | 1 | 2 | 1 | 0 | 2.00 |
| LGI Homes | 2 | 2 | 2 | 0 | 2.00 |
Lifetime Brands presently has a consensus target price of $8.50, indicating a potential downside of 1.33%. LGI Homes has a consensus target price of $72.75, indicating a potential upside of 29.68%. Given LGI Homes’ higher probable upside, analysts clearly believe LGI Homes is more favorable than Lifetime Brands.
Summary
LGI Homes beats Lifetime Brands on 10 of the 13 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 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.
About LGI Homes
LGI Homes, Inc. designs, constructs, and sells homes. It offers entry-level homes, such as attached and detached homes, and active adult homes under the LGI Homes brand name; and luxury series homes under the Terrata Homes brand name. The company also engages in the wholesale business, which include building and selling homes to large institutions looking to acquire single-family rental properties. It serves customers in Texas, Arizona, Florida, Georgia, New Mexico, Colorado, North Carolina, South Carolina, Washington, Tennessee, Minnesota, Oklahoma, Alabama, California, Oregon, Nevada, West Virginia, Virginia, Pennsylvania, Maryland, and Utah. LGI Homes, Inc. was founded in 2003 and is headquartered in The Woodlands, Texas.
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