Signet Jewelers (NYSE:SIG) and National Vision (NASDAQ:EYE) Financial Analysis

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

Valuation & Earnings

This table compares National Vision and Signet Jewelers”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
National Vision	$1.99 billion	0.65	$29.60 million	$0.61	26.85
Signet Jewelers	$6.81 billion	0.58	$294.40 million	$8.68	11.82

Signet Jewelers has higher revenue and earnings than National Vision. Signet Jewelers is trading at a lower price-to-earnings ratio than National Vision, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

National Vision has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500. Comparatively, Signet Jewelers has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for National Vision and Signet Jewelers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
National Vision	0	4	7	0	2.64
Signet Jewelers	0	5	6	1	2.67

National Vision presently has a consensus target price of $29.82, suggesting a potential upside of 82.04%. Signet Jewelers has a consensus target price of $125.56, suggesting a potential upside of 22.35%. Given National Vision’s higher possible upside, equities analysts clearly believe National Vision is more favorable than Signet Jewelers.

Profitability

This table compares National Vision and Signet Jewelers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
National Vision	2.47%	6.78%	3.01%
Signet Jewelers	5.19%	23.28%	7.61%

Summary

Signet Jewelers beats National Vision on 9 of the 13 factors compared between the two stocks.

About National Vision

National Vision Holdings, Inc., through its subsidiaries, operates as an optical retailer in the United States. The company operates in two segments, Owned & Host and Legacy. It offers eyeglasses and contact lenses, and optical accessory products; provides eye exams through its America’s Best, Eyeglass World, Vista Optical, Fred Meyer, and Vista Optical military, as well as Vision Center branded stores; and offers health maintenance organization and optometric services. National Vision Holdings, Inc. was founded in 1990 and is headquartered in Duluth, Georgia.

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.