Financial Contrast: Lovesac (NASDAQ:LOVE) vs. J.Jill (NYSE:JILL)

J.Jill (NYSE:JILL) and Lovesac (NASDAQ:LOVE) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitability, analyst recommendations, earnings, institutional ownership and dividends.

Institutional and Insider Ownership

40.7% of J.Jill shares are owned by institutional investors. Comparatively, 91.3% of Lovesac shares are owned by institutional investors. 4.4% of J.Jill shares are owned by insiders. Comparatively, 7.8% of Lovesac shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for J.Jill and Lovesac, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
J.Jill	0	5	2	0	2.29
Lovesac	1	0	4	0	2.60

J.Jill currently has a consensus price target of $17.50, suggesting a potential downside of 12.50%. Lovesac has a consensus price target of $22.67, suggesting a potential upside of 35.81%. Given Lovesac’s stronger consensus rating and higher probable upside, analysts clearly believe Lovesac is more favorable than J.Jill.

Valuation & Earnings

This table compares J.Jill and Lovesac”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
J.Jill	$587.35 million	0.51	$27.89 million	$1.37	14.60
Lovesac	$696.94 million	0.35	$4.07 million	$0.26	64.19

J.Jill has higher earnings, but lower revenue than Lovesac. J.Jill is trading at a lower price-to-earnings ratio than Lovesac, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

J.Jill has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500. Comparatively, Lovesac has a beta of 2.03, indicating that its stock price is 103% more volatile than the S&P 500.

Profitability

This table compares J.Jill and Lovesac’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
J.Jill	3.56%	24.44%	6.81%
Lovesac	0.55%	1.88%	0.75%

Summary

Lovesac beats J.Jill on 8 of the 14 factors compared between the two stocks.

About J.Jill

J.Jill, Inc. operates as an omnichannel retailer for women's apparel under the J.Jill brand in the United States. It offers apparel, footwear, and accessories, including scarves and jewelry. The company markets its products through retail stores, website, and catalogs. J.Jill, Inc. was founded in 1959 and is headquartered in Quincy, Massachusetts.

About Lovesac

The Lovesac Company designs, manufactures, and sells furniture. It offers sactionals, such as seats and sides; sacs, including foam beanbag chairs; and other products comprising drink holders, footsac blankets, decorative pillows, fitted seat tables, and ottomans. The company markets its products primarily through www.lovesac.com website, as well as showrooms at top tier malls, lifestyle centers, mobile concierges, kiosks, and street locations in 41 states in the United States; and in store pop-up- shops and shop-in-shops, and barter inventory transactions. The Lovesac Company was founded in 1995 and is based in Stamford, Connecticut.