Signet Jewelers (NYSE:SIG – Get Free Report) and Caleres (NYSE:CAL – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, dividends, earnings, institutional ownership and valuation.
Institutional & Insider Ownership
98.4% of Caleres shares are held by institutional investors. 1.2% of Signet Jewelers shares are held by company insiders. Comparatively, 3.1% of Caleres shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Dividends
Signet Jewelers pays an annual dividend of $1.40 per share and has a dividend yield of 1.4%. Caleres pays an annual dividend of $0.28 per share and has a dividend yield of 2.4%. Signet Jewelers pays out 16.1% of its earnings in the form of a dividend. Caleres pays out 18.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Signet Jewelers has raised its dividend for 4 consecutive years.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Signet Jewelers | 0 | 7 | 5 | 0 | 2.42 |
| Caleres | 0 | 3 | 0 | 0 | 2.00 |
Signet Jewelers currently has a consensus target price of $125.56, indicating a potential upside of 25.07%. Given Signet Jewelers’ stronger consensus rating and higher possible upside, research analysts clearly believe Signet Jewelers is more favorable than Caleres.
Profitability
This table compares Signet Jewelers and Caleres’ 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% |
| Caleres | 1.85% | 7.84% | 2.42% |
Risk and Volatility
Signet Jewelers has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500. Comparatively, Caleres has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500.
Earnings & Valuation
This table compares Signet Jewelers and Caleres”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 | 0.58 | $294.40 million | $8.68 | 11.57 |
| Caleres | $2.76 billion | 0.15 | -$6.69 million | $1.50 | 7.85 |
Signet Jewelers has higher revenue and earnings than Caleres. Caleres is trading at a lower price-to-earnings ratio than Signet Jewelers, indicating that it is currently the more affordable of the two stocks.
Summary
Signet Jewelers beats Caleres on 14 of the 17 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 Caleres
Caleres, Inc. engages in the retail and wholesale of footwear business in the United States, Canada, East Asia, and internationally. It operates through Famous Footwear and Brand Portfolio segments. The company offers licensed, branded, and private-label athletic, casual, and dress footwear products. The company provides brand name athletic, casual, and dress shoes, including Nike, Skechers, adidas, Vans, Crocs, Converse, Puma, Birkenstock, New Balance, Under Armour, Dr. Martens, Asics, Timberland, Bearpaw, Skechers, HeyDude, Franco Sarto, Rykä, Vince, Bzees, Veronica Beard, and Zodiac brands, as well as company-owned and licensed brands, such as LifeStride, Dr. Scholl’s Shoes, Blowfish Malibu, and Naturalizer. The company also operates naturalizer.com, naturalizer.ca, vionicshoes.com, samedelman.com, samedelman.co.uk, allenedmonds.com, allenedmonds.ca, drschollsshoes.com, lifestride.com, francosarto.com, ryka.com, bzees.com, and zodiacshoes.com, as well as Vince.com, blowfishshoes.com, and veronicabeard.com websites. In addition, it designs, sources, manufactures, and markets footwear to retail stores, such as online retailers, national chains, department stores, mass merchandisers, and independent retailers. Further, the company wholesales men’s footwear, apparel, leather goods, and accessories under the Allen Edmonds brand; footwear for women under LifeStride brand; Italian footwear Franco Sarto brand; athletic footwear for women under the Rykä brand; women’s shoe collection under the Vince brand; women’s footwear under the Bzees brand; and women’s footwear collection under Veronica Beard brand. The company was formerly known as Brown Shoe Company, Inc. and changed its name to Caleres, Inc. in May 2015. Caleres, Inc. was founded in 1878 and is headquartered in Saint Louis, Missouri.
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