Head to Head Contrast: Signet Jewelers (NYSE:SIG) & National Vision (NASDAQ:EYE)

Signet Jewelers (NYSE:SIG) and National Vision (NASDAQ:EYE) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, valuation and dividends.

Volatility and Risk

Signet Jewelers has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500. Comparatively, National Vision has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500.

Earnings and Valuation

This table compares Signet Jewelers and National Vision”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Signet Jewelers	$6.81 billion	0.57	$294.40 million	$8.68	11.66
National Vision	$1.99 billion	0.66	$29.60 million	$0.61	27.00

Signet Jewelers has higher revenue and earnings than National Vision. Signet Jewelers is trading at a lower price-to-earnings ratio than National Vision, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations and price targets for Signet Jewelers and National Vision, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Signet Jewelers	0	6	5	1	2.58
National Vision	0	4	7	0	2.64

Signet Jewelers presently has a consensus price target of $125.56, suggesting a potential upside of 24.10%. National Vision has a consensus price target of $29.82, suggesting a potential upside of 81.05%. Given National Vision’s stronger consensus rating and higher possible upside, analysts plainly believe National Vision is more favorable than Signet Jewelers.

Profitability

This table compares Signet Jewelers and National Vision’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Signet Jewelers	5.19%	23.28%	7.61%
National Vision	2.47%	6.78%	3.01%

Summary

Signet Jewelers beats National Vision on 8 of the 13 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 National Vision

National Vision Holdings, Inc., through its subsidiaries, operates as an optical retailer in the United States. The company operates in two segments, Owned & Host and Legacy. It offers eyeglasses and contact lenses, and optical accessory products; provides eye exams through its America’s Best, Eyeglass World, Vista Optical, Fred Meyer, and Vista Optical military, as well as Vision Center branded stores; and offers health maintenance organization and optometric services. National Vision Holdings, Inc. was founded in 1990 and is headquartered in Duluth, Georgia.