Unicharm Corporation and Lifetime Brands, Inc. are both key players in the consumer discretionary market, yet they differ significantly in their business models and financial performance. This article provides a thorough comparison of the two companies, evaluating aspects such as profitability, dividends, volatility, and analyst recommendations.
Profitability and Earnings
When examining profitability, Unicharm boasts higher net margins, return on equity, and return on assets compared to Lifetime Brands. Unicharm’s robust earnings can be attributed to its diverse product range, which includes health and hygiene products, baby care, and pet care items. In contrast, Lifetime Brands focuses on kitchenware and home products, which may face more competitive pressures.
Regarding revenue, Unicharm reports stronger figures than Lifetime Brands. However, Lifetime Brands is trading at a lower price-to-earnings ratio, indicating a potentially more attractive investment opportunity for those looking for affordable stocks.
Dividends and Payout Ratios
Both companies offer dividends, with Unicharm providing an annual payout of $0.04 per share, resulting in a dividend yield of 1.3%. Lifetime Brands, on the other hand, offers a higher annual dividend of $0.17 per share, achieving a more substantial yield of 5.3%. Notably, Unicharm allocates 23.5% of its earnings to dividends, while Lifetime Brands has a negative payout ratio of -10.2%. This indicates that Lifetime Brands retains more earnings for growth, making it a more appealing option for dividend investors based on its higher yield and lower payout ratio.
Volatility and Risk Assessment
In terms of stock volatility, Unicharm’s beta is 0.24, suggesting that its stock price is significantly less volatile than the S&P 500, by 76%. Conversely, Lifetime Brands has a beta of 1.3, indicating a 30% higher volatility compared to the S&P 500. This difference in volatility is crucial for investors looking to manage risk in their portfolios.
Analyst Ratings and Market Outlook
According to MarketBeat, analysts have a more favorable view of Lifetime Brands, assigning it a consensus target price of $4.75, which implies a potential upside of 48.44%. This strong consensus rating suggests that analysts see greater growth potential in Lifetime Brands compared to Unicharm.
In summary, while Unicharm outperforms Lifetime Brands in several key metrics, such as profitability and earnings, the latter demonstrates a stronger position in terms of dividends and market potential. Unicharm leads in 8 out of 15 comparative factors, yet the overall assessment indicates that the choice between these two companies may depend on specific investor priorities, such as income generation versus growth potential.
Company Profiles
Unicharm Corporation, established in 1941, is headquartered in Tokyo, Japan. The company specializes in manufacturing and selling a wide range of products, including baby care items, feminine hygiene products, and pet care goods. Its well-known brands include Moony, MamyPoko, and Sofy.
In contrast, Lifetime Brands, Inc., founded in 1945 and based in Garden City, New York, focuses on designing and selling branded kitchenware and tableware. The company’s product offerings include kitchen tools, cutlery, and dinnerware under various well-known brands such as Farberware and KitchenAid.
Investors assessing these two companies should consider their individual investment goals and risk tolerance, as both companies offer unique advantages and challenges in the consumer market.
