Tiffany & Co. (NYSE:TIF) and Reign Sapphire (OTCMKTS:RGNP) are both retail/wholesale companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.
Earnings and Valuation
This table compares Tiffany & Co. and Reign Sapphire’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Tiffany & Co.||$4.17 billion||3.01||$370.10 million||$4.13||24.79|
|Reign Sapphire||$1.28 million||0.81||-$4.25 million||N/A||N/A|
Tiffany & Co. pays an annual dividend of $2.20 per share and has a dividend yield of 2.1%. Reign Sapphire does not pay a dividend. Tiffany & Co. pays out 53.3% of its earnings in the form of a dividend. Tiffany & Co. has increased its dividend for 8 consecutive years.
This table compares Tiffany & Co. and Reign Sapphire’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Tiffany & Co.||10.16%||18.67%||11.13%|
Risk & Volatility
Tiffany & Co. has a beta of 1.8, suggesting that its share price is 80% more volatile than the S&P 500. Comparatively, Reign Sapphire has a beta of 4.13, suggesting that its share price is 313% more volatile than the S&P 500.
This is a summary of recent ratings for Tiffany & Co. and Reign Sapphire, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Tiffany & Co.||0||10||12||0||2.55|
Tiffany & Co. currently has a consensus price target of $131.37, indicating a potential upside of 28.31%. Given Tiffany & Co.’s higher possible upside, research analysts plainly believe Tiffany & Co. is more favorable than Reign Sapphire.
Institutional and Insider Ownership
81.2% of Tiffany & Co. shares are owned by institutional investors. 1.3% of Tiffany & Co. shares are owned by insiders. Comparatively, 51.4% of Reign Sapphire shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Tiffany & Co. beats Reign Sapphire on 11 of the 14 factors compared between the two stocks.
About Tiffany & Co.
Tiffany & Co., through its subsidiaries, designs, manufactures, and retails jewelry and other items in the Americas, the Asia-Pacific, Japan, Europe, and internationally. The company offers jewelry collections, engagement rings, and wedding bands. It also sells timepieces, leather goods, sterling silver goods, china, crystal, stationery, eyewear, fragrances, and other accessories; and wholesales diamonds and earnings. The company sells its products through retail, Internet and catalog, business-to-business, and wholesale distribution channels. As of January 31, 2018, it operated 315 stores, including 124 stores in the Americas, 87 stores in the Asia-Pacific, 54 stores in Japan, 46 stores in Europe, and 4 stores in the United Arab Emirates. Tiffany & Co. was founded in 1837 and is headquartered in New York, New York.
About Reign Sapphire
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.
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