Critical Survey: Signet Jewelers (SIG) vs. Reign Sapphire (RGNP)

Reign Sapphire (OTCMKTS:RGNP) and Signet Jewelers (NYSE:SIG) are both retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, dividends, analyst recommendations, risk, institutional ownership, earnings and valuation.

Risk and Volatility

Reign Sapphire has a beta of 4.13, meaning that its stock price is 313% more volatile than the S&P 500. Comparatively, Signet Jewelers has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Reign Sapphire and Signet Jewelers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Reign Sapphire 0 0 0 0 N/A
Signet Jewelers 0 11 0 0 2.00

Signet Jewelers has a consensus target price of $53.55, indicating a potential upside of 1.43%. Given Signet Jewelers’ higher probable upside, analysts plainly believe Signet Jewelers is more favorable than Reign Sapphire.

Profitability

This table compares Reign Sapphire and Signet Jewelers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Reign Sapphire -293.86% N/A -130.94%
Signet Jewelers -2.84% 17.52% 6.42%

Dividends

Signet Jewelers pays an annual dividend of $1.48 per share and has a dividend yield of 2.8%. Reign Sapphire does not pay a dividend. Signet Jewelers pays out 22.7% of its earnings in the form of a dividend. Signet Jewelers has increased its dividend for 6 consecutive years.

Valuation & Earnings

This table compares Reign Sapphire and Signet Jewelers’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Reign Sapphire $1.28 million 0.81 -$4.25 million N/A N/A
Signet Jewelers $6.25 billion 0.44 $519.30 million $6.51 8.11

Signet Jewelers has higher revenue and earnings than Reign Sapphire.

Summary

Signet Jewelers beats Reign Sapphire on 8 of the 11 factors compared between the two stocks.

Reign Sapphire Company Profile

Reign Sapphire Corporation operates as a direct-to-consumer, branded and custom jewelry company. The company offers rough sapphires to finished jewelry under the Reign Sapphire brand name. It also markets and distributes custom jewelry inscribed with location coordinates commemorating life's special moments under the Coordinates Collection brand name; and classic custom jewelry, including bracelets, necklaces, and rings under the Le Bloc brand. The company was founded in 2013 and is based in Beverly Hills, California. Reign Sapphire Corporation is a subsidiary of FD9 Group B.V.

Signet Jewelers Company Profile

Signet Jewelers Limited engages in the retail sale of diamond jewelry, watches, and other products in the United States, Canada, the United Kingdom, the Republic of Ireland, and the Channel Islands. Its Sterling Jewelers division operates stores in malls and off-mall locations primarily under the Kay Jewelers, Kay Jewelers Outlet, Jared The Galleria Of Jewelry, Jared Vault, and various mall-based regional brands, as well as JamesAllen.com, an online jewelry retailer Website. As of February 3, 2018, this division operated 1,586 stores. The company's Zale division operates jewelry stores and mall-based kiosks in shopping malls mainly under the Zales Jewelers, Zales Outlet, Peoples Jewellers, Gordon's Jewelers, and Mappins Jewellers regional brands. As of February 3, 2018, it operated 868 jewelry stores and 598 mall-based kiosks. Its UK Jewelry division operates stores in shopping malls and off-mall locations principally under the H.Samuel and Ernest Jones brands. As of February 3, 2018, this division operated 504 stores. The company also operates a diamond polishing factory, which is involved in diamond sourcing and polishing activities. Signet Jewelers Limited was founded in 1950 and is based in Hamilton, Bermuda.

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