Financial Review: Stein Mart (OTCMKTS:SMRTQ) versus J.Jill (NYSE:JILL)

J.Jill (NYSE:JILL) and Stein Mart (OTCMKTS:SMRTQ) are both retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, risk, earnings and dividends.

Institutional & Insider Ownership

40.7% of J.Jill shares are owned by institutional investors. 4.4% of J.Jill shares are owned by insiders. Comparatively, 39.4% of Stein Mart shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for J.Jill and Stein Mart, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
J.Jill	0	5	2	0	2.29
Stein Mart	0	0	0	0	0.00

J.Jill presently has a consensus target price of $15.50, indicating a potential downside of 8.07%. Given J.Jill’s stronger consensus rating and higher possible upside, equities analysts clearly believe J.Jill is more favorable than Stein Mart.

Profitability

This table compares J.Jill and Stein Mart’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%
Stein Mart	N/A	N/A	N/A

Valuation & Earnings

This table compares J.Jill and Stein Mart”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
J.Jill	$596.55 million	0.42	$27.89 million	$1.37	12.31
Stein Mart	N/A	N/A	N/A	N/A	N/A

J.Jill has higher revenue and earnings than Stein Mart.

Summary

J.Jill beats Stein Mart on 8 of the 9 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 Stein Mart

Stein Mart, Inc., a specialty omnichannel off-price retailer, offers designer and name-brand fashion apparels, home décor merchandise, accessories, and shoes at everyday discount prices in the United States. The company's stores also provides endless aisle, a mobile technology to locate products; a SMart Rewards loyalty program; co-branded and private label credit card programs; and electronic gift cards. As of June 3, 2020, it operated 281 stores in 30 states. The company also sells its products through an online retail selling site. Stein Mart, Inc. was founded in 1908 and is headquartered in Jacksonville, Florida. On August 12, 2020, Stein Mart, Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Middle District of Florida.