Financial Survey: J.Jill (NYSE:JILL) and Lowe’s Companies (NYSE:LOW)

J.Jill (NYSE:JILL) and Lowe’s Companies (NYSE:LOW) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for J.Jill and Lowe’s Companies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
J.Jill	0	5	2	0	2.29
Lowe’s Companies	2	12	22	1	2.59

J.Jill currently has a consensus price target of $24.50, indicating a potential upside of 9.96%. Lowe’s Companies has a consensus price target of $254.74, indicating a potential upside of 10.03%. Given Lowe’s Companies’ stronger consensus rating and higher probable upside, analysts plainly believe Lowe’s Companies is more favorable than J.Jill.

Volatility & Risk

J.Jill has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, Lowe’s Companies has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500.

Valuation and Earnings

This table compares J.Jill and Lowe’s Companies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
J.Jill	$596.55 million	0.55	$27.89 million	$1.79	12.45
Lowe’s Companies	$86.29 billion	1.51	$6.65 billion	$11.83	19.57

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

Institutional and Insider Ownership

40.7% of J.Jill shares are owned by institutional investors. Comparatively, 74.1% of Lowe’s Companies shares are owned by institutional investors. 4.4% of J.Jill shares are owned by insiders. Comparatively, 0.3% of Lowe’s Companies shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

J.Jill pays an annual dividend of $0.36 per share and has a dividend yield of 1.6%. Lowe’s Companies pays an annual dividend of $5.00 per share and has a dividend yield of 2.2%. J.Jill pays out 20.1% of its earnings in the form of a dividend. Lowe’s Companies pays out 42.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. J.Jill has increased its dividend for 1 consecutive years and Lowe’s Companies has increased its dividend for 53 consecutive years. Lowe’s Companies is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
J.Jill	4.62%	28.51%	8.13%
Lowe’s Companies	7.34%	-75.67%	12.82%

Summary

Lowe’s Companies beats J.Jill on 14 of the 18 factors compared between the two stocks.

About J.Jill

J.Jill, Inc. is a women’s apparel retailer focused on comfortable, versatile clothing and accessories. Its merchandise includes apparel, footwear and accessories designed for everyday wear. The company uses an omnichannel model, selling through its retail stores, website and catalogs. J.Jill traces its roots to a New England catalog business established in 1959. J.Jill primarily serves customers in the United States through its stores and digital channels.

About Lowe’s Companies

Lowe’s Companies, Inc. is a home improvement retailer serving homeowners, do-it-yourself customers and professional contractors. The company sells products for construction, maintenance, repair and renovation through its retail stores and online channels. Its offerings include appliances, tools, hardware, lumber and building materials, paint, plumbing and electrical supplies, and products for lawn and garden. Lowe’s also provides services such as installation and other project support. Founded in 1921 in North Wilkesboro, North Carolina, Lowe’s has grown into a major retailer operating across the United States.