Lifetime Brands (NASDAQ:LCUT) and Dover Motorsports (NYSE:DVD) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.
Insider & Institutional Ownership
36.7% of Lifetime Brands shares are held by institutional investors. Comparatively, 19.5% of Dover Motorsports shares are held by institutional investors. 43.5% of Lifetime Brands shares are held by company insiders. Comparatively, 51.1% of Dover Motorsports shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares Lifetime Brands and Dover Motorsports' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Lifetime Brands | -4.38% | 12.06% | 3.27% |
Dover Motorsports | 20.73% | 15.06% | 11.74% |
Dividends
Lifetime Brands pays an annual dividend of $0.17 per share and has a dividend yield of 1.3%. Dover Motorsports pays an annual dividend of $0.07 per share and has a dividend yield of 3.2%. Lifetime Brands pays out 37.8% of its earnings in the form of a dividend. Lifetime Brands has increased its dividend for 1 consecutive years.
Earnings and Valuation
This table compares Lifetime Brands and Dover Motorsports' gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Lifetime Brands | $734.90 million | 0.39 | $-44,420,000.00 | $0.45 | 29.36 |
Dover Motorsports | $45.96 million | 1.74 | $5.50 million | N/A | N/A |
Dover Motorsports has lower revenue, but higher earnings than Lifetime Brands.
Volatility and Risk
Lifetime Brands has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500. Comparatively, Dover Motorsports has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations for Lifetime Brands and Dover Motorsports, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Lifetime Brands | 0 | 0 | 1 | 0 | 3.00 |
Dover Motorsports | 0 | 0 | 0 | 0 | N/A |
Lifetime Brands currently has a consensus target price of $18.00, indicating a potential upside of 36.26%. Given Lifetime Brands' higher possible upside, equities research analysts plainly believe Lifetime Brands is more favorable than Dover Motorsports.
Summary
Dover Motorsports beats Lifetime Brands on 9 of the 15 factors compared between the two stocks.