Contrasting Signet Jewelers (NYSE:SIG) and Arhaus (NASDAQ:ARHS)

Arhaus (NASDAQ:ARHS – Get Free Report) and Signet Jewelers (NYSE:SIG – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, profitability, risk, dividends, earnings and analyst recommendations.

Analyst Ratings

This is a summary of current ratings and price targets for Arhaus and Signet Jewelers, as provided by MarketBeat.

Arhaus presently has a consensus target price of $9.92, suggesting a potential upside of 27.30%. Signet Jewelers has a consensus target price of $125.56, suggesting a potential upside of 25.07%. Given Arhaus’ higher possible upside, equities analysts plainly believe Arhaus is more favorable than Signet Jewelers.

Valuation & Earnings

This table compares Arhaus and Signet Jewelers”s gross revenue, earnings per share and valuation.

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

Volatility and Risk

Arhaus has a beta of 2.3, suggesting that its share price is 130% more volatile than the S&P 500. Comparatively, Signet Jewelers has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500.

Profitability

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

Institutional & Insider Ownership

27.9% of Arhaus shares are held by institutional investors. 1.2% of Arhaus shares are held by company insiders. Comparatively, 1.2% of Signet Jewelers shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Signet Jewelers beats Arhaus on 8 of the 14 factors compared between the two stocks.

About Arhaus

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Arhaus, Inc. operates as a lifestyle brand and premium retailer in the home furnishings market in the United States. It provides merchandise assortments across various categories, including furniture, lighting, textiles, décor, and outdoor. The company's furniture products comprise bedroom, dining room, living room, and home office furnishings, which includes sofas, dining tables and chairs, accent chairs, console and coffee tables, beds, headboards, dressers, desks, bookcases, modular storage, and other items; and outdoor products, such as outdoor dining tables, chairs, chaises and other furniture, lighting, textiles, décor, umbrellas, and fire pits. It offers lighting products, including various distinct and artistic lighting fixtures comprising chandeliers, pendants, table and floor lamps, and sconces; textile products, such as handcrafted indoor and outdoor rugs, bed linens, and pillows and throws; and décor products, including various wall art to mirrors, vases to candles, and other decorative accessories. The company distributes its products through an omni-channel model comprising showrooms, e-commerce platform, print and digital media, and in-home designer services. Arhaus, Inc. was founded in 1986 and is headquartered in Boston Heights, Ohio.

About Signet Jewelers

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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.