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

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

Valuation and Earnings

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This table compares J.Jill and Cherokee’s top-line 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 0.33 $55.37 million $0.79 6.73
Cherokee $40.62 million 0.47 -$7.92 million $0.78 1.76



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.

Institutional and Insider Ownership

24.1% of J.Jill shares are owned by institutional investors. Comparatively, 63.1% of Cherokee shares are owned by institutional investors. 8.7% of J.Jill shares are owned by company insiders. Comparatively, 12.8% of Cherokee shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations and price targets 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 presently has a consensus price target of $7.33, suggesting a potential upside of 37.84%. Cherokee has a consensus price target of $7.83, suggesting a potential upside of 471.78%. Given Cherokee’s stronger consensus rating and higher probable upside, analysts plainly believe Cherokee is more favorable than J.Jill.

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%

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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