Contrasting Lovesac (NASDAQ:LOVE) & J.Jill (NYSE:JILL)

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

Analyst Recommendations

This is a summary of recent recommendations 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 target price of $17.50, suggesting a potential downside of 12.50%. Lovesac has a consensus target price of $22.67, suggesting a potential upside of 35.81%. Given Lovesac’s stronger consensus rating and higher possible upside, analysts plainly believe Lovesac is more favorable than J.Jill.

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 company insiders. Comparatively, 7.8% of Lovesac shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares J.Jill and Lovesac”s top-line revenue, earnings per share 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.

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%

Risk and Volatility

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.

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.