Cherokee (NASDAQ: CHKE) and J.Jill (NYSE:JILL) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.
Institutional and Insider Ownership
63.1% of Cherokee shares are owned by institutional investors. Comparatively, 24.1% of J.Jill shares are owned by institutional investors. 12.8% of Cherokee shares are owned by insiders. Comparatively, 8.7% of J.Jill shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares Cherokee and J.Jill’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and price targets for Cherokee and J.Jill, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cherokee presently has a consensus target price of $7.83, suggesting a potential upside of 459.52%. J.Jill has a consensus target price of $7.33, suggesting a potential upside of 36.56%. Given Cherokee’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Cherokee is more favorable than J.Jill.
Earnings & Valuation
This table compares Cherokee and J.Jill’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cherokee||$40.62 million||0.48||-$7.92 million||$0.78||1.79|
|J.Jill||$698.15 million||0.34||$55.37 million||$0.79||6.80|
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.
J.Jill beats Cherokee on 7 of the 12 factors compared between the two stocks.
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.
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.
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