Lifetime Brands (NASDAQ:LCUT – Get Free Report) and KB Home (NYSE:KBH – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, institutional ownership, earnings, profitability and risk.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Lifetime Brands and KB Home, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lifetime Brands | 0 | 3 | 1 | 0 | 2.25 |
| KB Home | 4 | 9 | 4 | 0 | 2.00 |
Lifetime Brands presently has a consensus target price of $9.50, suggesting a potential upside of 16.85%. KB Home has a consensus target price of $52.23, suggesting a potential upside of 20.71%. Given KB Home’s higher possible upside, analysts plainly believe KB Home is more favorable than Lifetime Brands.
Insider and Institutional Ownership
40.6% of Lifetime Brands shares are owned by institutional investors. Comparatively, 96.1% of KB Home shares are owned by institutional investors. 44.4% of Lifetime Brands shares are owned by company insiders. Comparatively, 4.7% of KB Home shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Risk and Volatility
Lifetime Brands has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500. Comparatively, KB Home has a beta of 1.34, meaning that its stock price is 34% more volatile than the S&P 500.
Valuation & Earnings
This table compares Lifetime Brands and KB Home”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lifetime Brands | $647.93 million | 0.29 | -$26.94 million | $1.43 | 5.69 |
| KB Home | $6.24 billion | 0.42 | $428.79 million | $3.55 | 12.19 |
KB Home has higher revenue and earnings than Lifetime Brands. Lifetime Brands is trading at a lower price-to-earnings ratio than KB Home, indicating that it is currently the more affordable of the two stocks.
Dividends
Lifetime Brands pays an annual dividend of $0.17 per share and has a dividend yield of 2.1%. KB Home pays an annual dividend of $1.00 per share and has a dividend yield of 2.3%. Lifetime Brands pays out 11.9% of its earnings in the form of a dividend. KB Home pays out 28.2% 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. KB Home has increased its dividend for 2 consecutive years. KB Home is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Profitability
This table compares Lifetime Brands and KB Home’s 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% |
| KB Home | 4.39% | 6.56% | 3.71% |
Summary
KB Home beats Lifetime Brands on 11 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 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 KB Home
KB Home operates as a homebuilding company in the United States. It operates through four segments: West Coast, Southwest, Central, and Southeast. It builds and sells various homes, including attached and detached single-family residential homes, townhomes, and condominiums primarily for first-time, first move-up, second move-up, and active adult homebuyers. The company also provides financial services, such as insurance products and title services, as well as mortgage banking services, including residential consumer mortgage loans to homebuyers. It has operations in Arizona, California, Colorado, Florida, Idaho, Nevada, North Carolina, Texas, and Washington. The company was formerly known as Kaufman and Broad Home Corporation and changed its name to KB Home in January 2001. KB Home was founded in 1957 and is based in Los Angeles, California.
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