Head to Head Review: Luk Fook Holdings (International) (LKFLF) versus Tiffany & Co. (TIF)

Luk Fook Holdings (International) (OTCMKTS: LKFLF) and Tiffany & Co. (NYSE:TIF) are both retail/wholesale companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, earnings, profitability, valuation and institutional ownership.

Dividends

Tiffany & Co. pays an annual dividend of $2.20 per share and has a dividend yield of 1.7%. Luk Fook Holdings (International) 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.

Volatility & Risk

Luk Fook Holdings (International) has a beta of -0.27, meaning that its share price is 127% less volatile than the S&P 500. Comparatively, Tiffany & Co. has a beta of 1.8, meaning that its share price is 80% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Luk Fook Holdings (International) and Tiffany & Co., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Luk Fook Holdings (International) 0 0 0 0 N/A
Tiffany & Co. 0 11 10 0 2.48

Tiffany & Co. has a consensus price target of $125.83, suggesting a potential downside of 4.71%. Given Tiffany & Co.’s higher possible upside, analysts clearly believe Tiffany & Co. is more favorable than Luk Fook Holdings (International).

Profitability

This table compares Luk Fook Holdings (International) and Tiffany & Co.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Luk Fook Holdings (International) N/A N/A N/A
Tiffany & Co. 9.75% 17.61% 10.52%

Institutional and Insider Ownership

81.5% of Tiffany & Co. shares are owned by institutional investors. 1.3% of Tiffany & Co. shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Luk Fook Holdings (International) and Tiffany & Co.’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Luk Fook Holdings (International) N/A N/A N/A N/A N/A
Tiffany & Co. $4.17 billion 3.93 $370.10 million $4.13 31.97

Tiffany & Co. has higher revenue and earnings than Luk Fook Holdings (International).

Summary

Tiffany & Co. beats Luk Fook Holdings (International) on 11 of the 12 factors compared between the two stocks.

About Luk Fook Holdings (International)

Luk Fook Holdings (International) Limited, an investment holding company, engages in sourcing, designing, wholesaling, trademark licensing, and retailing various gold and platinum jewelry, and gem-set jewelry. The company is also involved in gold bullion trading; wholesaling polished diamonds; property holding; retailing optical products; wholesaling and retailing watches; and the provision of quality examination services, as well as the authentication of gemstones. In addition, it provides software development and Internet related services. As of March 31, 2017, the company operated a total of 1,496 shops in Hong Kong, Macau, Mainland China, Singapore, Korea, Malaysia, the United States, Canada, and Australia. Luk Fook Holdings (International) Limited was founded in 1991 and is headquartered in Jordan, Hong Kong.

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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