Contrasting J.Jill (JILL) & Cherokee (CHKE)

J.Jill (NYSE: JILL) and Cherokee (NASDAQ:CHKE) are both small-cap retail/wholesale companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, profitability, dividends, analyst recommendations, risk, valuation and institutional ownership.

Insider & Institutional Ownership

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24.0% of J.Jill shares are held by institutional investors. Comparatively, 63.1% of Cherokee shares are held by institutional investors. 8.7% of J.Jill shares are held by insiders. Comparatively, 9.2% of Cherokee shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
J.Jill 7.93% 24.25% 5.88%
Cherokee -42.20% -0.68% -0.30%

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
J.Jill $698.15 million 0.31 $55.37 million $0.79 6.16
Cherokee $40.62 million 0.48 -$7.92 million $0.78 1.79

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

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
J.Jill 0 3 3 0 2.50
Cherokee 0 0 3 0 3.00

J.Jill currently has a consensus target price of $7.33, indicating a potential upside of 50.58%. Cherokee has a consensus target price of $7.83, indicating a potential upside of 459.52%. Given Cherokee’s stronger consensus rating and higher possible upside, analysts clearly believe Cherokee is more favorable than J.Jill.

Summary

J.Jill beats Cherokee on 7 of the 12 factors compared between the two stocks.

J.Jill Company Profile

J.Jill, Inc. operates as a specialty retailer of women's apparel under the J.Jill brand in the United States. It offers knit and woven tops, bottoms, and dresses, as well as sweaters and outerwear; and complementary footwear and accessories, including scarves, jewelry, and hosiery for misses, petite, and women. Its customers include women in 40-65 age range. The company markets its products through retail stores, Website, and catalog. As of January 28, 2017, it operated 275 stores in 43 states. J.Jill, Inc. is headquartered in Quincy, Massachusetts.

Cherokee Company Profile

Cherokee Inc. markets, manages, and licenses fashion and lifestyle brands for apparel, footwear, home products, and accessories worldwide. It owns or represents Cherokee, Hi-Tec, Magnum, 50 Peaks, Interceptor, Hawk Signature, Tony Hawk, Liz Lange, Completely Me by Liz Lange, Flip Flop Shops, Everyday California, Carole Little, Sideout, and other brands, as well as Saint Tropez-West, Chorus Line, All That Jazz, and Sideout Sport names. As of January 28, 2017, the company had 124 continuing license agreements covering in approximately 110 countries. Cherokee Inc. was founded in 1988 and is headquartered in Sherman Oaks, California.

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