Head to Head Analysis: Mohawk Industries (NYSE:MHK) and Lifetime Brands (NASDAQ:LCUT)

Mohawk Industries (NYSE:MHK – Get Free Report) and Lifetime Brands (NASDAQ:LCUT – Get Free Report) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.

Earnings & Valuation

This table compares Mohawk Industries and Lifetime Brands”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mohawk Industries $10.79 billion 0.79 $369.90 million $7.55 16.73
Lifetime Brands $647.93 million 0.32 -$26.94 million $1.43 6.38

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

Profitability

This table compares Mohawk Industries and Lifetime Brands’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mohawk Industries 4.15% 7.50% 4.60%
Lifetime Brands 4.81% 26.39% 9.21%

Analyst Recommendations

This is a summary of recent recommendations for Mohawk Industries and Lifetime Brands, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mohawk Industries 0 12 3 1 2.31
Lifetime Brands 0 2 1 1 2.75

Mohawk Industries presently has a consensus target price of $132.08, indicating a potential upside of 4.59%. Lifetime Brands has a consensus target price of $9.50, indicating a potential upside of 4.17%. Given Mohawk Industries’ higher probable upside, equities research analysts clearly believe Mohawk Industries is more favorable than Lifetime Brands.

Institutional & Insider Ownership

79.0% of Mohawk Industries shares are owned by institutional investors. Comparatively, 40.6% of Lifetime Brands shares are owned by institutional investors. 17.9% of Mohawk Industries shares are owned by company insiders. Comparatively, 44.4% of Lifetime Brands shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Mohawk Industries has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500. Comparatively, Lifetime Brands has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500.

Summary

Mohawk Industries beats Lifetime Brands on 9 of the 14 factors compared between the two stocks.

About Mohawk Industries

(Get Free Report)

Mohawk Industries, Inc. designs, manufactures, sources, distributes, and markets flooring products for residential and commercial remodeling, and new construction channels in the United States, Europe, Latin America, and internationally. It operates through three segments: Global Ceramic, Flooring North America, and Flooring Rest of the World. The company provides ceramic, porcelain, and natural stone tiles products for floor and wall applications; natural stones, porcelain slabs, and quartz countertops, as well as installation materials; floor covering products comprising broadloom carpets, carpet tiles, rugs and mats, carpet pads, laminates, medium-density fiberboards, wood floorings, luxury vinyl tiles, and sheet vinyl; and roofing panels, insulation boards, mezzanine flooring products, medium-density fiberboard, and chipboards. It also licenses its intellectual property to flooring manufacturers. The company sells its products under the American Olean, Daltile, Decortiles, Eliane, EmilGroup, KAI, Kerama Marazzi, Marazzi, Ragno, Aladdin Commercial, Durkan, Foss, IVC, Karastan, Mohawk, Mohawk Group, Mohawk Home, Pergo, Portico, Quick-Step, Feltex, GH Commercial, Godfrey Hirst, Hycraft, IVC Commercial, IVC Home, Lentex, Leoline, and Moduleo, Redbook, Unilin, and Vitromex brands. It offers its products to company-owned service centers and stores, company-operated distributors, floor covering retailers, wholesalers, mass merchandisers, department stores, shop at home, buying groups, ceramic tile specialists, e-commerce retailers, residential builders, independent distributors, commercial contractors, and commercial end users. The company was incorporated in 1988 and is headquartered in Calhoun, Georgia.

About Lifetime Brands

(Get Free Report)

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.

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