J.Jill (NYSE:JILL) & Capri (NYSE:CPRI) Critical Analysis

J.Jill (NYSE:JILL) and Capri (NYSE:CPRI) are both retail/wholesale companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.

Risk and Volatility

J.Jill has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500. Comparatively, Capri has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500.

Earnings & Valuation

This table compares J.Jill and Capri”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
J.Jill	$596.55 million	0.31	$27.89 million	$1.82	6.72
Capri	$4.44 billion	0.49	-$1.18 billion	($4.26)	-4.32

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

Insider and Institutional Ownership

40.7% of J.Jill shares are held by institutional investors. Comparatively, 84.3% of Capri shares are held by institutional investors. 4.4% of J.Jill shares are held by insiders. Comparatively, 2.3% of Capri shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for J.Jill and Capri, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
J.Jill	2	2	2	0	2.00
Capri	1	7	6	1	2.47

J.Jill presently has a consensus target price of $17.25, suggesting a potential upside of 41.09%. Capri has a consensus target price of $25.92, suggesting a potential upside of 40.77%. Given J.Jill’s higher probable upside, equities research analysts plainly believe J.Jill is more favorable than Capri.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
J.Jill	4.68%	30.77%	8.38%
Capri	-13.57%	-430.23%	-8.70%

Summary

J.Jill beats Capri on 8 of the 15 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 Capri

Capri Holdings Limited designs, markets, distributes, and retails branded women's and men's apparel, footwear, and accessories in the United States, Canada, Latin America, Europe, the Middle East, Africa, and Asia. It operates through three segments: Versace, Jimmy Choo, and Michael Kors. The company offers ready-to-wear, accessories, footwear, handbags, scarves and belts, small leather goods, eyewear, watches, jewelry, fragrances, and home furnishings through a distribution network, including boutiques, department, and specialty stores, as well as through e-commerce sites. It also engages in licensing agreements to the manufacture and sale of watches, jewelry, eyewear, and fragrances. The company was formerly known as Michael Kors Holdings Limited and changed its name to Capri Holdings Limited in December 2018. Capri Holdings Limited was founded in 1981 and is headquartered in London, the United Kingdom.