Signet Jewelers (NYSE:SIG – Get Free Report) is one of 286 public companies in the “Specialty Retail” industry, but how does it contrast to its competitors? We will compare Signet Jewelers to similar companies based on the strength of its profitability, risk, earnings, dividends, analyst recommendations, valuation and institutional ownership.
Risk and Volatility
Signet Jewelers has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500. Comparatively, Signet Jewelers’ competitors have a beta of 1.77, suggesting that their average share price is 77% more volatile than the S&P 500.
Profitability
This table compares Signet Jewelers and its competitors’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Signet Jewelers | 4.29% | 22.54% | 7.35% |
| Signet Jewelers Competitors | -2.54% | -25.41% | 2.94% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Signet Jewelers | 0 | 5 | 5 | 2 | 2.75 |
| Signet Jewelers Competitors | 3540 | 15230 | 21179 | 547 | 2.46 |
Signet Jewelers presently has a consensus price target of $112.00, suggesting a potential upside of 20.74%. As a group, “Specialty Retail” companies have a potential upside of 10.44%. Given Signet Jewelers’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Signet Jewelers is more favorable than its competitors.
Valuation and Earnings
This table compares Signet Jewelers and its competitors gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Signet Jewelers | $6.81 billion | $294.40 million | 13.01 |
| Signet Jewelers Competitors | $7.14 billion | $387.72 million | 15.00 |
Signet Jewelers’ competitors have higher revenue and earnings than Signet Jewelers. Signet Jewelers is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
Institutional & Insider Ownership
51.6% of shares of all “Specialty Retail” companies are owned by institutional investors. 1.2% of Signet Jewelers shares are owned by company insiders. Comparatively, 21.1% of shares of all “Specialty Retail” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Dividends
Signet Jewelers pays an annual dividend of $1.40 per share and has a dividend yield of 1.5%. Signet Jewelers pays out 19.6% of its earnings in the form of a dividend. As a group, “Specialty Retail” companies pay a dividend yield of 2.0% and pay out 35.6% of their earnings in the form of a dividend. Signet Jewelers has increased its dividend for 4 consecutive years.
Summary
Signet Jewelers competitors beat Signet Jewelers on 8 of the 15 factors compared.
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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