Tiffany & Co. (TIF) versus Zale (ZLC) Financial Survey

Tiffany & Co. (NYSE: TIF) and Zale (NYSE:ZLC) are both retail/wholesale companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, earnings, valuation, institutional ownership, profitability and analyst recommendations.

Earnings and Valuation

This table compares Tiffany & Co. and Zale’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tiffany & Co. $4.00 billion 3.02 $446.10 million $3.72 26.14
Zale N/A N/A N/A $0.24 N/A

Tiffany & Co. has higher revenue and earnings than Zale. Zale is trading at a lower price-to-earnings ratio than Tiffany & Co., indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

81.0% of Tiffany & Co. shares are held by institutional investors. 1.4% of Tiffany & Co. shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Tiffany & Co. and Zale’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tiffany & Co. 11.46% 15.77% 9.43%
Zale N/A N/A N/A

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Tiffany & Co. and Zale, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tiffany & Co. 0 10 8 0 2.44
Zale 0 0 0 0 N/A

Tiffany & Co. presently has a consensus price target of $97.50, indicating a potential upside of 0.26%.

Dividends

Tiffany & Co. pays an annual dividend of $2.00 per share and has a dividend yield of 2.1%. Zale does not pay a dividend. Tiffany & Co. pays out 53.8% of its earnings in the form of a dividend. Tiffany & Co. has raised its dividend for 7 consecutive years.

Summary

Tiffany & Co. beats Zale on 10 of the 11 factors compared between the two stocks.

About Tiffany & Co.

Tiffany & Co. is a holding company that operates through its subsidiary companies. The Company’s principal subsidiary, Tiffany and Company (Tiffany), is a jeweler and specialty retailer. The Company’s segments include Americas, Asia-Pacific, Japan, Europe and Other. Through its subsidiaries, the Company designs and manufactures products and operates TIFFANY & CO. retail stores around the world, and also sells its products through Internet, catalog, business-to-business and wholesale operations. The Company also sells timepieces, leather goods, sterling silverware, china, crystal, stationery, fragrances and accessories. The Americas segment includes sale in Company-operated TIFFANY & CO. stores in the United States, Canada and Latin America. As of January 31, 2017, the Asia-Pacific segment included 85 Company-operated TIFFANY & CO. stores. As of January 31, 2017, the Japan segment included 55 Company-operated TIFFANY & CO. stores. The Other segment consists of non-reportable segments.

About Zale

Zale Corporation, through its wholly owned subsidiaries, is a retailer of fine jewelry in North America. The Company operates in three segments: fine jewelry, kiosk jewelry and all other. As of July 31, 2012, the Company operated 1,124 specialty retail jewelry stores and 654 kiosks located mainly in shopping malls throughout the United States, Canada and Puerto Rico. The Company’s fine jewelry segment consists of five brands: Zales Jewelers, Peoples Jewellers, Zales Outlet, Mappins Jewellers, and Gordon’s Jewelers The Company’s kiosk jewelry operates under the brand names Piercing Pagoda, Plumb Gold, and Silver and Gold Connection (collectively, Piercing Pagoda) through mall-based kiosks. The Company provides insurance and reinsurance services for various types of insurance coverage, which is marketed primarily to its private label credit card guests, through Zale Indemnity Company, Zale Life Insurance Company and Jewel Re-Insurance Ltd.

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