Chico’s FAS (NYSE: CHS) and J.Jill (NYSE:JILL) are both small-cap cyclical consumer goods & services companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, dividends, earnings, profitability, valuation, institutional ownership and risk.

Dividends

Chico’s FAS pays an annual dividend of $0.33 per share and has a dividend yield of 3.6%. J.Jill does not pay a dividend. Chico’s FAS pays out 49.3% of its earnings in the form of a dividend. Chico’s FAS has raised its dividend for 8 consecutive years.

Institutional and Insider Ownership

31.3% of J.Jill shares are held by institutional investors. 1.8% of Chico’s FAS shares are held by insiders. Comparatively, 8.7% of J.Jill shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Chico’s FAS 3.77% 13.98% 7.94%
J.Jill 4.15% 23.68% 5.57%

Analyst Recommendations

This is a summary of current ratings for Chico’s FAS and J.Jill, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chico’s FAS 1 7 5 0 2.31
J.Jill 0 5 4 0 2.44

Chico’s FAS presently has a consensus target price of $11.00, suggesting a potential upside of 18.79%. J.Jill has a consensus target price of $15.38, suggesting a potential upside of 80.88%. Given J.Jill’s stronger consensus rating and higher possible upside, analysts plainly believe J.Jill is more favorable than Chico’s FAS.

Earnings & Valuation

This table compares Chico’s FAS and J.Jill’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Chico’s FAS $2.48 billion 0.48 $91.22 million $0.67 13.82
J.Jill $639.06 million 0.58 $24.07 million $0.64 13.28

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

About Chico’s FAS

Chico’s FAS, Inc. is an omni-channel specialty retailer of women’s private branded, casual-to-dressy clothing, intimates and accessories, operating under the Chico’s, White House Black Market (WHBM) and Soma brand names. The Company is also engaged in the sale of merchandise in its domestic and international retail stores. The Chico’s brand sells private branded clothing focusing on women 45 and older. Chico’s apparel includes the Black Label, Zenergy and Travelers collections. The WHBM brand sells private branded clothing focusing on women 35 and older. WHBM sells clothing and accessory items, including everyday basics, wear-to-work, denim and occasion. It offers black and white color palette. The accessories at WHBM include shoes, belts, scarves, handbags and jewelry. The Soma brand sells private branded lingerie, sleepwear, loungewear, activewear and beauty products focusing on women 35 and older. The lingerie category includes bras, panties, shapewear and swimwear.

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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