Contrasting Eastern (EML) & Lifetime Brands (LCUT)

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Eastern (NASDAQ:EML) and Lifetime Brands (NASDAQ:LCUT) are both small-cap industrial products companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, dividends and risk.

Profitability

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

Net Margins Return on Equity Return on Assets
Eastern 4.30% 13.72% 7.01%
Lifetime Brands -1.59% 0.52% 0.20%

Valuation & Earnings

This table compares Eastern and Lifetime Brands’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Eastern $204.24 million 0.86 $5.04 million N/A N/A
Lifetime Brands $579.48 million 0.37 $2.15 million $0.71 14.65

Eastern has higher earnings, but lower revenue than Lifetime Brands.

Insider & Institutional Ownership

65.0% of Eastern shares are held by institutional investors. Comparatively, 46.4% of Lifetime Brands shares are held by institutional investors. 13.7% of Eastern shares are held by company insiders. Comparatively, 41.7% of Lifetime Brands shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Eastern and Lifetime Brands, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eastern 0 0 0 0 N/A
Lifetime Brands 0 0 0 0 N/A

Risk and Volatility

Eastern has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500. Comparatively, Lifetime Brands has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500.

Dividends

Eastern pays an annual dividend of $0.44 per share and has a dividend yield of 1.6%. Lifetime Brands pays an annual dividend of $0.17 per share and has a dividend yield of 1.6%. Lifetime Brands pays out 23.9% of its earnings in the form of a dividend.

Summary

Eastern beats Lifetime Brands on 7 of the 12 factors compared between the two stocks.

Eastern Company Profile

The Eastern Company designs, manufactures, and sells industrial hardware, security products, and metal products in the United States and internationally. The company's Industrial Hardware segment offers passenger restraint and vehicular locks, latches, hinges, mirrors, mirror-cameras, light-weight sleeper boxes, and truck bodies for tractor-trailer trucks, specialty commercial vehicles, recreational vehicles, fire and rescue vehicles, school buses, military vehicles, and other vehicles. This segment also provides fasteners and other closure devices. The company's Security Products segment offers e engineered and standard closing and locking systems, including vehicular accessory locks, cabinet locks, cam locks, electric switch locks, tubular key locks, and combination padlocks under the SESAMEE, PRESTOLOCK and SEARCHALERT names. Its products also include timers, drop meters, coin chutes, money boxes, meter cases, smart cards, value transfer stations, smart card readers, card management software, and access control units. In addition, this segment provides coin acceptors and other coin security products for the commercial laundry markets; and circuit boards and other electronic assemblies to various industries, including measurement systems, semiconductor equipment manufacturing, and industrial controls, medical, and military products. The company's Metal Products segment offers expansion shells to support the roofs of underground mines; and specialty malleable and ductile iron castings. This segment's products include mine roof support anchors, couplers for railroad braking systems, support anchoring for construction, and couplers/fittings for utility industries. The company sells its products to original equipment manufacturers, distributors, route operators, and locksmiths. The Eastern Company was founded in 1858 and is based in Naugatuck, Connecticut.

Lifetime Brands Company Profile

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.

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