Driven Brands (NASDAQ:DRVN) and Signet Jewelers (NYSE:SIG) Head to Head Survey

Signet Jewelers (NYSE:SIG) and Driven Brands (NASDAQ:DRVN) are both mid-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, dividends and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Signet Jewelers and Driven Brands, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Signet Jewelers	0	5	6	1	2.67
Driven Brands	1	8	6	2	2.53

Signet Jewelers currently has a consensus price target of $125.56, suggesting a potential upside of 22.81%. Driven Brands has a consensus price target of $16.23, suggesting a potential upside of 31.84%. Given Driven Brands’ higher possible upside, analysts plainly believe Driven Brands is more favorable than Signet Jewelers.

Volatility & Risk

Signet Jewelers has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500. Comparatively, Driven Brands has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500.

Earnings and Valuation

This table compares Signet Jewelers and Driven Brands”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Signet Jewelers	$6.81 billion	0.57	$294.40 million	$8.68	11.78
Driven Brands	$1.86 billion	1.09	$140.16 million	$1.04	11.84

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

Profitability

This table compares Signet Jewelers and Driven Brands’ 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%
Driven Brands	8.61%	24.13%	5.03%

Institutional and Insider Ownership

77.1% of Driven Brands shares are held by institutional investors. 1.2% of Signet Jewelers shares are held by company insiders. Comparatively, 4.4% of Driven Brands shares are held 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.

Summary

Driven Brands beats Signet Jewelers on 8 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 Driven Brands

Driven Brands Holdings Inc., together with its subsidiaries, provides automotive services to retail and commercial customers in the United States, Canada, and internationally. It offers various services, such as paint, collision, glass, repair, car wash, oil change, and maintenance services. The company also distributes automotive parts, including radiators, air conditioning components, and exhaust products to automotive repair shops, auto parts stores, body shops, and other auto repair outlets; windshields and glass accessories through a network of distribution centers; and consumable products, such as oil filters and wiper blades, as well as training services to repair and maintenance, and paint and collision shops. It sells its products and services under the CARSTAR, IMO, MAACO, Meineke Car Care Centers, PH Vitres D’Autos, Take 5 Oil Change, Take 5 Car Wash, Auto Glass Now, Fix Auto USA, and 1-800-Radiator & A/C, Spire Supply, and Automotive Training Institute brands. The company was founded in 1972 and is headquartered in Charlotte, North Carolina.