Comparing Signet Jewelers (SIG) and Reign Sapphire (RGNP)

Signet Jewelers (NYSE:SIG) and Reign Sapphire (OTCMKTS:RGNP) are both retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, valuation, earnings and dividends.

Profitability

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
Signet Jewelers -2.84% 17.52% 6.42%
Reign Sapphire -356.98% N/A -183.04%

Valuation and Earnings

This table compares Signet Jewelers and Reign Sapphire’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Signet Jewelers $6.25 billion 0.50 $519.30 million $6.51 9.28
Reign Sapphire $1.28 million 0.93 -$4.25 million N/A N/A

Signet Jewelers has higher revenue and earnings than Reign Sapphire.

Institutional & Insider Ownership

93.6% of Signet Jewelers shares are held by institutional investors. 0.9% of Signet Jewelers shares are held by company insiders. Comparatively, 51.4% of Reign Sapphire shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Signet Jewelers and Reign Sapphire, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Signet Jewelers 0 11 0 0 2.00
Reign Sapphire 0 0 0 0 N/A

Signet Jewelers presently has a consensus target price of $53.55, indicating a potential downside of 11.33%. Given Signet Jewelers’ higher probable upside, analysts clearly believe Signet Jewelers is more favorable than Reign Sapphire.

Risk and Volatility

Signet Jewelers has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500. Comparatively, Reign Sapphire has a beta of 4.13, suggesting that its stock price is 313% more volatile than the S&P 500.

Dividends

Signet Jewelers pays an annual dividend of $1.48 per share and has a dividend yield of 2.5%. 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 raised its dividend for 6 consecutive years.

Summary

Signet Jewelers beats Reign Sapphire on 9 of the 13 factors compared between the two stocks.

Signet Jewelers Company Profile

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.

Reign Sapphire Company Profile

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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