Signet Jewelers (SIG) versus Reign Sapphire (RGNP) Critical Review
Signet Jewelers (NYSE:SIG) and Reign Sapphire (OTCMKTS:RGNP) are both retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.
Risk and Volatility
Signet Jewelers has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500. Comparatively, Reign Sapphire has a beta of 4.13, meaning that its stock price is 313% more volatile than the S&P 500.
This table compares Signet Jewelers and Reign Sapphire’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Signet Jewelers||$6.25 billion||0.48||$519.30 million||$6.51||8.80|
|Reign Sapphire||$1.28 million||0.77||-$4.25 million||N/A||N/A|
Signet Jewelers has higher revenue and earnings than Reign Sapphire.
Signet Jewelers pays an annual dividend of $1.48 per share and has a dividend yield of 2.6%. Reign Sapphire does not pay a dividend. Signet Jewelers pays out 22.7% of its earnings in the form of a dividend. Signet Jewelers has increased its dividend for 6 consecutive years.
Insider & Institutional Ownership
93.6% of Signet Jewelers shares are owned by institutional investors. 0.9% of Signet Jewelers shares are owned by insiders. Comparatively, 51.4% of Reign Sapphire shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This table compares Signet Jewelers and Reign Sapphire’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and target prices for Signet Jewelers and Reign Sapphire, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Signet Jewelers currently has a consensus target price of $53.55, indicating a potential downside of 6.52%. Given Signet Jewelers’ higher possible upside, equities research analysts plainly believe Signet Jewelers is more favorable than Reign Sapphire.
Signet Jewelers beats Reign Sapphire on 9 of the 13 factors compared between the two stocks.
About Signet Jewelers
Signet Jewelers Limited engages in the retail sale of diamond jewelry, watches, and other products in the United States, Canada, the United Kingdom, the Republic of Ireland, and the Channel Islands. Its Sterling Jewelers division operates stores in malls and off-mall locations primarily under the Kay Jewelers, Kay Jewelers Outlet, Jared The Galleria Of Jewelry, Jared Vault, and various mall-based regional brands, as well as JamesAllen.com, an online jewelry retailer Website. As of February 3, 2018, this division operated 1,586 stores. The company's Zale division operates jewelry stores and mall-based kiosks in shopping malls mainly under the Zales Jewelers, Zales Outlet, Peoples Jewellers, Gordon's Jewelers, and Mappins Jewellers regional brands. As of February 3, 2018, it operated 868 jewelry stores and 598 mall-based kiosks. Its UK Jewelry division operates stores in shopping malls and off-mall locations principally under the H.Samuel and Ernest Jones brands. As of February 3, 2018, this division operated 504 stores. The company also operates a diamond polishing factory, which is involved in diamond sourcing and polishing activities. Signet Jewelers Limited was founded in 1950 and is based in Hamilton, Bermuda.
About Reign Sapphire
Reign Sapphire Corporation operates as a direct-to-consumer, branded and custom jewelry company. The company offers rough sapphires to finished jewelry under the Reign Sapphire brand name. It also markets and distributes custom jewelry inscribed with location coordinates commemorating life's special moments under the Coordinates Collection brand name; and classic custom jewelry, including bracelets, necklaces, and rings under the Le Bloc brand. The company was founded in 2013 and is based in Beverly Hills, California. Reign Sapphire Corporation is a subsidiary of FD9 Group B.V.
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