Reign Sapphire (OTCMKTS:RGNP) and Tiffany & Co. (NYSE:TIF) are both retail/wholesale companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.
Tiffany & Co. pays an annual dividend of $2.20 per share and has a dividend yield of 2.0%. 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.
79.2% of Tiffany & Co. shares are owned by institutional investors. 51.4% of Reign Sapphire shares are owned by company insiders. Comparatively, 1.3% of Tiffany & Co. shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Reign Sapphire and Tiffany & Co.’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Reign Sapphire||$1.28 million||0.70||-$4.25 million||N/A||N/A|
|Tiffany & Co.||$4.17 billion||3.22||$370.10 million||$4.13||26.54|
Tiffany & Co. has higher revenue and earnings than Reign Sapphire.
Volatility and Risk
Reign Sapphire has a beta of 9.46, suggesting that its share price is 846% more volatile than the S&P 500. Comparatively, Tiffany & Co. has a beta of 1.75, suggesting that its share price is 75% more volatile than the S&P 500.
This is a breakdown of current ratings and price targets for Reign Sapphire and Tiffany & Co., as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Tiffany & Co.||0||10||12||0||2.55|
Tiffany & Co. has a consensus target price of $131.37, suggesting a potential upside of 19.86%. Given Tiffany & Co.’s higher possible upside, analysts clearly believe Tiffany & Co. is more favorable than Reign Sapphire.
This table compares Reign Sapphire and Tiffany & Co.’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%|
Tiffany & Co. beats Reign Sapphire on 11 of the 14 factors compared between the two stocks.
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.
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.
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