J.Jill (NYSE:JILL – Get Free Report) and Lowe’s Companies (NYSE:LOW – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, earnings, valuation, profitability, dividends, institutional ownership and analyst recommendations.
Institutional & Insider Ownership
40.7% of J.Jill shares are held by institutional investors. Comparatively, 74.1% of Lowe’s Companies shares are held by institutional investors. 4.4% of J.Jill shares are held by insiders. Comparatively, 0.3% of Lowe’s Companies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
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% |
Volatility & Risk
J.Jill has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500. Comparatively, Lowe’s Companies has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500.
Earnings & Valuation
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 | 0.56 | $27.89 million | $1.79 | 12.50 |
| Lowe’s Companies | $86.29 billion | 1.46 | $6.65 billion | $11.83 | 19.03 |
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.
Analyst Recommendations
This is a summary of recent ratings and price targets for J.Jill and Lowe’s Companies, as provided 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 target price of $24.50, suggesting a potential upside of 9.51%. Lowe’s Companies has a consensus target price of $253.48, suggesting a potential upside of 12.59%. Given Lowe’s Companies’ stronger consensus rating and higher probable upside, analysts plainly believe Lowe’s Companies is more favorable than J.Jill.
Summary
Lowe’s Companies beats J.Jill on 14 of the 18 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 Lowe’s Companies
Lowe’s Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States. The company offers a line of products for construction, maintenance, repair, remodeling, and decorating. It also provides home improvement products, such as appliances, seasonal and outdoor living, lawn and garden, lumber, kitchens and bath, tools, paint, millwork, hardware, flooring, rough plumbing, building materials, décor, and electrical. In addition, the company offers installation services through independent contractors in various product categories; and extended protection plans and repair services. It sells its national brand-name merchandise and private brand products to professional customers, homeowners, renters, businesses, and government. The company also sells its products through Lowes.com website; and through mobile applications. Lowe’s Companies, Inc. was founded in 1921 and is based in Mooresville, North Carolina.
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