Head to Head Review: Blue Nile (NILE) vs. Tiffany & Co. (TIF)

Tiffany & Co. (NYSE: TIF) and Blue Nile (NASDAQ:NILE) are both retail/wholesale companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitabiliy, earnings and valuation.

Profitability

This table compares Tiffany & Co. and Blue Nile’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tiffany & Co. 11.26% 15.91% 9.30%
Blue Nile 2.02% 59.32% 8.14%

Valuation and Earnings

This table compares Tiffany & Co. and Blue Nile’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Tiffany & Co. $4.01 billion 2.92 $964.90 million $3.60 26.08
Blue Nile N/A N/A N/A $0.81 50.26

Tiffany & Co. has higher revenue and earnings than Blue Nile. Tiffany & Co. is trading at a lower price-to-earnings ratio than Blue Nile, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

82.7% of Tiffany & Co. shares are held by institutional investors. Comparatively, 99.8% of Blue Nile shares are held by institutional investors. 1.3% of Tiffany & Co. shares are held by company insiders. Comparatively, 5.7% of Blue Nile shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Tiffany & Co. pays an annual dividend of $2.00 per share and has a dividend yield of 2.1%. Blue Nile does not pay a dividend. Tiffany & Co. pays out 55.6% of its earnings in the form of a dividend. Blue Nile has raised its dividend for 7 consecutive years.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Tiffany & Co. and Blue Nile, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tiffany & Co. 0 9 10 0 2.53
Blue Nile 0 1 0 0 2.00

Tiffany & Co. currently has a consensus price target of $93.16, indicating a potential downside of 0.79%. Given Tiffany & Co.’s stronger consensus rating and higher possible upside, equities analysts clearly believe Tiffany & Co. is more favorable than Blue Nile.

Volatility and Risk

Tiffany & Co. has a beta of 1.87, suggesting that its share price is 87% more volatile than the S&P 500. Comparatively, Blue Nile has a beta of 0.07, suggesting that its share price is 93% less volatile than the S&P 500.

Summary

Tiffany & Co. beats Blue Nile on 9 of the 14 factors compared between the two stocks.

Tiffany & Co. Company Profile

Tiffany & Co. is a holding company that operates through its subsidiary companies. The Company’s principal subsidiary, Tiffany and Company (Tiffany), is a jeweler and specialty retailer. The Company’s segments include Americas, Asia-Pacific, Japan, Europe and Other. Through its subsidiaries, the Company designs and manufactures products and operates TIFFANY & CO. retail stores around the world, and also sells its products through Internet, catalog, business-to-business and wholesale operations. The Company also sells timepieces, leather goods, sterling silverware, china, crystal, stationery, fragrances and accessories. The Americas segment includes sale in Company-operated TIFFANY & CO. stores in the United States, Canada and Latin America. As of January 31, 2017, the Asia-Pacific segment included 85 Company-operated TIFFANY & CO. stores. As of January 31, 2017, the Japan segment included 55 Company-operated TIFFANY & CO. stores. The Other segment consists of non-reportable segments.

Blue Nile Company Profile

Blue Nile, Inc. (Blue Nile) is a United States-based company, which operates as an online retailer of diamonds and fine jewelry. The Company’s merchandise consists of engagement and non-engagement products. The engagement product category includes gold or platinum engagement rings with a diamond center stone and loose diamonds. Its non-engagement product category includes rings, wedding bands, earrings, necklaces, pendants, bracelets, gifts and accessories containing precious metals, diamonds, gemstones, or pearls. It offers various types of women’s wedding rings, including Eternity, Signature Diamond, White Gold, Yellow Gold and Rose Gold. It also offers various types of men’s wedding rings, such as Palladium, Tungsten, Tantalum and Titanium. In addition to sales of diamonds and fine jewelry, the Company provides education, guidance and support to enable customers to learn about and purchase diamonds and fine jewelry. It offers its products for sale through the Blue Nile Website.

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