Financial Comparison: Signet Jewelers (NYSE:SIG) versus CarParts.com (NASDAQ:PRTS)

Signet Jewelers (NYSE:SIG) and CarParts.com (NASDAQ:PRTS) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, risk, dividends, valuation and earnings.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Signet Jewelers and CarParts.com, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Signet Jewelers	0	7	5	0	2.42
CarParts.com	1	1	0	0	1.50

Signet Jewelers currently has a consensus target price of $125.56, indicating a potential upside of 21.86%. CarParts.com has a consensus target price of $6.00, indicating a potential downside of 30.48%. Given Signet Jewelers’ stronger consensus rating and higher probable upside, analysts plainly believe Signet Jewelers is more favorable than CarParts.com.

Institutional & Insider Ownership

75.3% of CarParts.com shares are owned by institutional investors. 1.2% of Signet Jewelers shares are owned by insiders. Comparatively, 6.6% of CarParts.com shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Signet Jewelers and CarParts.com’s 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%
CarParts.com	-5.35%	-47.19%	-14.52%

Volatility and Risk

Signet Jewelers has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, CarParts.com has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500.

Earnings & Valuation

This table compares Signet Jewelers and CarParts.com”s gross 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	0.59	$294.40 million	$8.68	11.87
CarParts.com	$547.53 million	0.13	-$50.44 million	($4.33)	-1.99

Signet Jewelers has higher revenue and earnings than CarParts.com. CarParts.com 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 CarParts.com on 12 of the 14 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 CarParts.com

CarParts.com, Inc., together with its subsidiaries, operates as an online provider of aftermarket auto parts and accessories in the United States and the Philippines. It offers replacement parts, such as parts for the exterior of an automobile; mirror products; engine and chassis components, as well as other mechanical and electrical parts; and performance parts and accessories. The company sells its products to individual customers through its flagship website www.carparts.com and app; online marketplaces, including third-party auction sites and shopping portals; and auto parts wholesale distributors. The company was formerly known as U.S. Auto Parts Network, Inc. and changed its name to CarParts.com, Inc. in July 2020. CarParts.com, Inc. was incorporated in 1995 and is headquartered in Torrance, California.