Signet Jewelers (NYSE:SIG – Get Free Report) and Luk Fook (OTC:LKFLF – Get Free Report) are both retail/wholesale companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, institutional ownership, profitability and analyst recommendations.
Profitability
This table compares Signet Jewelers and Luk Fook’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Signet Jewelers | 8.57% | 28.69% | 9.42% |
Luk Fook | N/A | N/A | N/A |
Analyst Ratings
This is a summary of recent ratings and target prices for Signet Jewelers and Luk Fook, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Signet Jewelers | 0 | 2 | 3 | 0 | 2.60 |
Luk Fook | 0 | 1 | 0 | 0 | 2.00 |
Risk and Volatility
Signet Jewelers has a beta of 2.11, indicating that its stock price is 111% more volatile than the S&P 500. Comparatively, Luk Fook has a beta of -0.01, indicating that its stock price is 101% less volatile than the S&P 500.
Valuation and Earnings
This table compares Signet Jewelers and Luk Fook”s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Signet Jewelers | $6.85 billion | 0.36 | $810.40 million | $8.69 | 6.43 |
Luk Fook | $1.53 billion | 0.79 | $163.93 million | N/A | N/A |
Signet Jewelers has higher revenue and earnings than Luk Fook.
Summary
Signet Jewelers beats Luk Fook on 9 of the 10 factors compared between the two stocks.
About Signet Jewelers
Signet Jewelers Limited operates as a diamond jewelry retailer. It operates through three segments: North America, International, and Other. The North America segment operates jewelry stores in jewelry stores in malls, mall-based kiosks, and off-mall locations in the United States and Canada primarily under the Kay Jewelers, Kay Jewelers Outlet, Jared The Galleria Of Jewelry, Jared Vault, Zales Outlet, Zales Jewelers, Diamonds Direct, James Allen, Banter by Piercing Pagoda, and Peoples Jewellers names, as well as operates online through its digital banners, James Allen and Blue Nile. This segment also engages in jewelry subscription business. The International segment operates stores in shopping malls and off-mall locations primarily under the H.Samuel and Ernest Jones brands in the United Kingdom, Republic of Ireland, and Channel Islands. The Other segment is involved in the purchase and conversion of rough diamonds to polished stones, as well as the provision of diamond polishing services. Signet Jewelers Limited is based in Hamilton, Bermuda.
About Luk Fook
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 products. It offers ring and pair rings, necklaces, pendants, earrings, bangles and bracelets, charms, figurines, accessories, and other products of various materials comprising diamond, gold, platinum, jadeite, gemstone, pearl, and silver materials. The company also provides authentication of gemstones; gold bullion trading services; management services to group companies and wholesale distribution of gold and jewelry products; and software development and services related to internet. In addition, it wholesales polished diamonds; offers trademark licensing, brand building, promotion of quality examination services, as well as provides handling services on diamond subcontracting and diamonds custom export services; and engages in electronic retailing of gold and jewelry products. The company was founded in 1991 and is headquartered in Sha Tin, Hong Kong.
Receive News & Ratings for Signet Jewelers Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Signet Jewelers and related companies with MarketBeat.com's FREE daily email newsletter.