Signet Jewelers (NYSE:SIG) vs. Luk Fook (OTC:LKFLF) Critical Survey

Luk Fook (OTC:LKFLF) and Signet Jewelers (NYSE:SIG) are both retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, dividends and valuation.

Analyst Recommendations

This is a summary of recent recommendations for Luk Fook and Signet Jewelers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Luk Fook	0	1	0	0	2.00
Signet Jewelers	0	2	3	0	2.60

Signet Jewelers has a consensus target price of $95.20, indicating a potential upside of 70.25%. Given Signet Jewelers’ stronger consensus rating and higher probable upside, analysts clearly believe Signet Jewelers is more favorable than Luk Fook.

Profitability

This table compares Luk Fook and Signet Jewelers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Luk Fook	N/A	N/A	N/A
Signet Jewelers	8.57%	28.69%	9.42%

Risk & Volatility

Luk Fook has a beta of -0.01, meaning that its share price is 101% less volatile than the S&P 500. Comparatively, Signet Jewelers has a beta of 2.11, meaning that its share price is 111% more volatile than the S&P 500.

Earnings & Valuation

This table compares Luk Fook and Signet Jewelers”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Luk Fook	$1.53 billion	0.79	$163.93 million	N/A	N/A
Signet Jewelers	$6.85 billion	0.36	$810.40 million	$8.69	6.43

Signet Jewelers has higher revenue and earnings than Luk Fook.

Summary

Signet Jewelers beats Luk Fook on 9 of the 10 factors compared between the two stocks.

About Luk Fook

Luk Fook Holdings (International) Limited, an investment holding company, engages in sourcing, designing, wholesaling, trademark licensing, and retailing various gold and platinum jewelry, and gem-set jewelry products. It offers ring and pair rings, necklaces, pendants, earrings, bangles and bracelets, charms, figurines, accessories, and other products of various materials comprising diamond, gold, platinum, jadeite, gemstone, pearl, and silver materials. The company also provides authentication of gemstones; gold bullion trading services; management services to group companies and wholesale distribution of gold and jewelry products; and software development and services related to internet. In addition, it wholesales polished diamonds; offers trademark licensing, brand building, promotion of quality examination services, as well as provides handling services on diamond subcontracting and diamonds custom export services; and engages in electronic retailing of gold and jewelry products. The company was founded in 1991 and is headquartered in Sha Tin, Hong Kong.

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.