Analyzing Signet Jewelers (SIG) & Luk Fook Holdings (International) (LKFLF)

Signet Jewelers (NYSE: SIG) and Luk Fook Holdings (International) (OTCMKTS:LKFLF) are both mid-cap retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, analyst recommendations and valuation.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Signet Jewelers and Luk Fook Holdings (International), as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Signet Jewelers 0 11 2 0 2.15
Luk Fook Holdings (International) 0 0 0 0 N/A

Signet Jewelers currently has a consensus target price of $53.00, suggesting a potential downside of 8.21%. Given Signet Jewelers’ higher possible upside, equities research analysts clearly believe Signet Jewelers is more favorable than Luk Fook Holdings (International).

Profitability

This table compares Signet Jewelers and Luk Fook Holdings (International)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Signet Jewelers -1.01% 18.52% 6.94%
Luk Fook Holdings (International) N/A N/A N/A

Risk & Volatility

Signet Jewelers has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500. Comparatively, Luk Fook Holdings (International) has a beta of -0.32, meaning that its share price is 132% less volatile than the S&P 500.

Earnings and Valuation

This table compares Signet Jewelers and Luk Fook Holdings (International)’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Signet Jewelers $6.25 billion 0.55 $519.30 million $6.51 8.87
Luk Fook Holdings (International) N/A N/A N/A N/A N/A

Signet Jewelers has higher revenue and earnings than Luk Fook Holdings (International).

Institutional and Insider Ownership

96.0% of Signet Jewelers shares are held by institutional investors. 0.9% of Signet Jewelers shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Signet Jewelers pays an annual dividend of $1.48 per share and has a dividend yield of 2.6%. Luk Fook Holdings (International) 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.

Summary

Signet Jewelers beats Luk Fook Holdings (International) on 10 of the 12 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 Luk Fook Holdings (International)

Luk Fook Holdings (International) Limited, an investment holding company, engages in sourcing, designing, wholesaling, trademark licensing, and retailing various gold and platinum jewelry, and gem-set jewelry. The company is also involved in gold bullion trading; wholesaling polished diamonds; property holding; retailing optical products; wholesaling and retailing watches; and the provision of quality examination services, as well as the authentication of gemstones. In addition, it provides software development and Internet related services. As of March 31, 2017, the company operated a total of 1,496 shops in Hong Kong, Macau, Mainland China, Singapore, Korea, Malaysia, the United States, Canada, and Australia. Luk Fook Holdings (International) Limited was founded in 1991 and is headquartered in Jordan, Hong Kong.

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