Critical Analysis: Arçelik Anonim Sirketi (OTCMKTS:ACKAY) and Lifetime Brands (NASDAQ:LCUT)

Lifetime Brands (NASDAQ:LCUT) and Arçelik Anonim Sirketi (OTCMKTS:ACKAY) are both consumer cyclical companies, but which is the better business? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, profitability, valuation, earnings and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings for Lifetime Brands and Arçelik Anonim Sirketi, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lifetime Brands	0	0	2	0	3.00
Arçelik Anonim Sirketi	0	0	0	0	N/A

Lifetime Brands currently has a consensus target price of $11.50, indicating a potential upside of 95.25%. Given Lifetime Brands’ higher possible upside, analysts plainly believe Lifetime Brands is more favorable than Arçelik Anonim Sirketi.

Earnings and Valuation

This table compares Lifetime Brands and Arçelik Anonim Sirketi”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lifetime Brands	$678.72 million	0.19	-$8.41 million	($0.27)	-21.81
Arçelik Anonim Sirketi	N/A	N/A	N/A	$4.47	4.53

Arçelik Anonim Sirketi has lower revenue, but higher earnings than Lifetime Brands. Lifetime Brands is trading at a lower price-to-earnings ratio than Arçelik Anonim Sirketi, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

40.6% of Lifetime Brands shares are owned by institutional investors. Comparatively, 0.1% of Arçelik Anonim Sirketi shares are owned by institutional investors. 43.2% of Lifetime Brands shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

Lifetime Brands pays an annual dividend of $0.17 per share and has a dividend yield of 2.9%. Arçelik Anonim Sirketi pays an annual dividend of $1.74 per share and has a dividend yield of 8.6%. Lifetime Brands pays out -63.0% of its earnings in the form of a dividend. Arçelik Anonim Sirketi pays out 39.0% 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.

Profitability

This table compares Lifetime Brands and Arçelik Anonim Sirketi’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lifetime Brands	-2.58%	4.51%	1.58%
Arçelik Anonim Sirketi	N/A	N/A	N/A

Summary

Lifetime Brands beats Arçelik Anonim Sirketi on 8 of the 12 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 Arçelik Anonim Sirketi

Arçelik Anonim Sirketi, together with its subsidiaries, produces, markets, sells, after sales services, imports, and exports consumer durable goods and electronics in Turkey, Europe, the Asia Pacific, Africa, and internationally. It operates through White Goods, Consumer Electronics, and Other segments. It offers refrigerators, automatic and semi-automatic top-loading washing machines, chest and upright deep freezers, split air conditioners, microwave ovens, water coolers, dryers, dish washers, ovens, cookers, home appliances, furniture and kitchen gadgets, hoods, built-in cookers, laundry dryers, water dispensers, and coffee machines. The company also provides furnaces, aspirators, mini-midi ovens, warming drawers, water purifiers, combi boilers, kettles, room heaters, and fans; small home appliances comprising brooms, cooking utensils, personal care and hygiene products, and irons; consumer electronics, such as smart phones, laptops and tablets, POS cash registers, Hi-fi systems, portable sound systems, and 3D printers; and hermetic compressors and motor pumps. In addition, it offers televisions, computers, cash registers, and other electronic devices. The company provides its products under the Altus, Arctic, Blomberg, Dawlance, Arçelik, Beko, Defy, Elektrabregenz, Flavel, Grundig, Leisure, STINOL, and VoltasBeko brand names. Arçelik Anonim Sirketi was incorporated in 1955 and is headquartered in Istanbul, Turkey.