Chow Tai Fook (OTCMKTS:CJEWY – Get Free Report) and Signet Jewelers (NYSE:SIG – Get Free Report) are both retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.
Dividends
Chow Tai Fook pays an annual dividend of $0.41 per share and has a dividend yield of 2.4%. Signet Jewelers pays an annual dividend of $1.28 per share and has a dividend yield of 1.6%. Signet Jewelers pays out 139.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Signet Jewelers has increased its dividend for 4 consecutive years.
Valuation & Earnings
This table compares Chow Tai Fook and Signet Jewelers”s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Chow Tai Fook | $11.50 billion | 1.47 | $758.96 million | N/A | N/A |
Signet Jewelers | $6.70 billion | 0.50 | $61.20 million | $0.92 | 88.29 |
Chow Tai Fook has higher revenue and earnings than Signet Jewelers.
Volatility and Risk
Chow Tai Fook has a beta of 0.19, indicating that its share price is 81% less volatile than the S&P 500. Comparatively, Signet Jewelers has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations and price targets for Chow Tai Fook and Signet Jewelers, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Chow Tai Fook | 0 | 0 | 0 | 0 | 0.00 |
Signet Jewelers | 0 | 3 | 4 | 0 | 2.57 |
Signet Jewelers has a consensus price target of $87.14, suggesting a potential upside of 7.28%. Given Signet Jewelers’ stronger consensus rating and higher possible upside, analysts clearly believe Signet Jewelers is more favorable than Chow Tai Fook.
Profitability
This table compares Chow Tai Fook and Signet Jewelers’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Chow Tai Fook | N/A | N/A | N/A |
Signet Jewelers | 0.63% | 22.41% | 7.32% |
Summary
Signet Jewelers beats Chow Tai Fook on 8 of the 13 factors compared between the two stocks.
About Chow Tai Fook
Chow Tai Fook Jewellery Group Limited, an investment holding company, manufactures and sells jewelry products in Mainland China, Hong Kong, Macau, Taiwan, Cambodia, Canada, Korea, Japan, Malaysia, the Philippines, Singapore, Thailand, the United States, and Vietnam. The company offers gem-set, platinum and k-gold jewelry, and gold jewelry and products under the CHOW TAI FOOK, HEARTS ON FIRE, ENZO, MONOLOGUE, and SOINLOVE brands. It also distributes watches of various brands. In addition, the company is involved in the trading of diamonds; and the provision of services to franchisees. The company also sells its products through online platforms. The company was founded in 1929 and is headquartered in Central, Hong Kong. Chow Tai Fook Jewellery Group Limited is a subsidiary of Chow Tai Fook Capital Limited.
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.
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