Lifetime Brands (NASDAQ:LCUT – Get Free Report) and Installed Building Products (NYSE:IBP – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.
Analyst Recommendations
This is a summary of current recommendations and price targets for Lifetime Brands and Installed Building Products, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lifetime Brands | 0 | 2 | 1 | 1 | 2.75 |
| Installed Building Products | 1 | 9 | 2 | 1 | 2.23 |
Lifetime Brands currently has a consensus price target of $9.50, suggesting a potential upside of 4.17%. Installed Building Products has a consensus price target of $245.36, suggesting a potential upside of 27.15%. Given Installed Building Products’ higher possible upside, analysts clearly believe Installed Building Products is more favorable than Lifetime Brands.
Risk & Volatility
Dividends
Lifetime Brands pays an annual dividend of $0.17 per share and has a dividend yield of 1.9%. Installed Building Products pays an annual dividend of $1.56 per share and has a dividend yield of 0.8%. Lifetime Brands pays out 11.9% of its earnings in the form of a dividend. Installed Building Products pays out 16.8% 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. Lifetime Brands is clearly the better dividend stock, given its higher yield and lower payout ratio.
Institutional and Insider Ownership
40.6% of Lifetime Brands shares are owned by institutional investors. Comparatively, 99.6% of Installed Building Products shares are owned by institutional investors. 44.4% of Lifetime Brands shares are owned by insiders. Comparatively, 13.8% of Installed Building Products shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Lifetime Brands and Installed Building Products’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Lifetime Brands | 4.81% | 26.39% | 9.21% |
| Installed Building Products | 8.46% | 42.12% | 13.20% |
Earnings and Valuation
This table compares Lifetime Brands and Installed Building Products”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lifetime Brands | $647.93 million | 0.32 | -$26.94 million | $1.43 | 6.38 |
| Installed Building Products | $2.97 billion | 1.73 | $265.40 million | $9.29 | 20.77 |
Installed Building Products has higher revenue and earnings than Lifetime Brands. Lifetime Brands is trading at a lower price-to-earnings ratio than Installed Building Products, indicating that it is currently the more affordable of the two stocks.
Summary
Installed Building Products beats Lifetime Brands on 12 of the 16 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 Installed Building Products
Installed Building Products, Inc., together with its subsidiaries, engages in the installation of insulation, waterproofing, fire-stopping, fireproofing, garage doors, rain gutters, window blinds, shower doors, closet shelving and mirrors, and other products in the United States. It operates through Installation, Distribution, and Manufacturing operation segments. The company offers a range of insulation materials, such as fiberglass and cellulose, and spray foam insulation materials. It is also involved in the installation of insulation and sealant materials in various areas of a structure, which includes basement and crawl space, building envelope, attic, and acoustical applications. In addition, the company installs a range of caulk and sealant products that control air infiltration in residential and commercial buildings; and waterproofing options, including sheet and hot applied waterproofing membranes, as well as deck coating, bentonite, and air and vapor systems. Further, it distributes spray foam insulation, metal building insulation, residential insulation, and mechanical and fabricated Styrofoam insulation, as well as accessories and equipment used in the insulation installation process; and manufactures cellulose insulation and specialty industrial fibers. It serves homebuilders, multi-family and commercial and agricultural construction firms, individual homeowners, and repair and remodeling contractors. The company was formerly known as CCIB Holdco, Inc. Installed Building Products, Inc. was founded in 1977 and is based in Columbus, Ohio.
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