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

Profitability

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

Net Margins Return on Equity Return on Assets
bebe stores -11.36% -79.31% -34.95%
J.Jill N/A N/A N/A

Analyst Recommendations

This is a breakdown of recent recommendations for bebe stores and J.Jill, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
bebe stores 0 0 0 0 N/A
J.Jill 0 5 4 0 2.44

J.Jill has a consensus target price of $15.38, suggesting a potential upside of 174.55%. Given J.Jill’s higher possible upside, analysts plainly believe J.Jill is more favorable than bebe stores.

Earnings & Valuation

This table compares bebe stores and J.Jill’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
bebe stores $393.59 million 0.11 -$138.96 million ($4.96) -1.11
J.Jill $639.06 million 0.38 $24.07 million $0.68 8.24

J.Jill has higher revenue and earnings than bebe stores. bebe stores 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 & Insider Ownership

16.7% of bebe stores shares are held by institutional investors. Comparatively, 32.0% of J.Jill shares are held by institutional investors. 59.0% of bebe stores shares are held by insiders. Comparatively, 8.7% of J.Jill shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

J.Jill beats bebe stores on 10 of the 11 factors compared between the two stocks.

About bebe stores

bebe stores, inc. designs, develops and produces a range of contemporary women’s apparel and accessories. The Company’s product offering includes a range of separates, tops, dresses, active wear and accessories for a range of occasions. It designs and develops its merchandise in-house, which is manufactured to its specifications and it also sources directly from third-party manufacturers. The Company also offers accessories, which include jewelry, optical, fragrance, shoes and handbags. The Company operates stores in the United States, Puerto Rico and Canada. In addition, it has an online store at www.bebe.com that ships to customers in the United States, Canada, Puerto Rico, the United States Protectorates and internationally via its third-party providers, International Checkout and Shoprunner. It has international stores operated by licensees in South East Asia, the United Arab Emirates, Russia, South America, Turkey and other territories.

About J.Jill

J.Jill, Inc. (J.Jill) operates as a specialty retailer in the women’s apparel industry. J.Jill is a women’s apparel brand focused on customer in the 40-65 age segment. The Company operates an integrated omni-channel platform that is diversified across its retail stores, Website and catalogs. It operates in the retail and direct channels segment. Its direct channel consists of its Website and catalog orders. As of January 28, 2017, it operated 275 stores in 43 states. The Company also offers a range of footwear and accessories, including scarves, jewelry and hosiery. Its products are marketed under the J.Jill brand name and sold through its direct and retail channels. It offers two sub-brands as extensions of its brand aesthetic: Pure Jill and Wearever. Its Website provides customers with access to the J.Jill product offering and features content, including updates on new collections and guidance on how to wear and wardrobe its styles.

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