Head-To-Head Comparison: Luk Fook Holdings (International) (LKFLF) and Signet Jewelers (SIG)

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

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Luk Fook Holdings (International) N/A N/A N/A N/A N/A
Signet Jewelers $6.25 billion 0.53 $519.30 million $6.51 8.56

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

Dividends

Signet Jewelers pays an annual dividend of $1.48 per share and has a dividend yield of 2.7%. 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 raised its dividend for 6 consecutive years.

Institutional and Insider Ownership

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

Profitability

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

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

Analyst Recommendations

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

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

Signet Jewelers has a consensus target price of $53.00, indicating a potential downside of 4.93%. Given Signet Jewelers’ higher possible upside, analysts clearly believe Signet Jewelers is more favorable than Luk Fook Holdings (International).

Volatility & Risk

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

Summary

Signet Jewelers beats Luk Fook Holdings (International) on 10 of the 12 factors compared between the two stocks.

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.

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.

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