Digital Brands Group (NASDAQ:DBGI) and J.Jill (NYSE:JILL) Critical Review

J.Jill (NYSE:JILL) and Digital Brands Group (NASDAQ:DBGI) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, earnings, dividends and institutional ownership.

Volatility & Risk

J.Jill has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500. Comparatively, Digital Brands Group has a beta of 0.04, suggesting that its share price is 96% less volatile than the S&P 500.

Profitability

This table compares J.Jill and Digital Brands Group’s 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%
Digital Brands Group	-768.25%	-561.70%	-90.27%

Analyst Recommendations

This is a summary of current recommendations for J.Jill and Digital Brands Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
J.Jill	0	5	2	0	2.29
Digital Brands Group	1	0	0	0	1.00

J.Jill currently has a consensus price target of $24.50, suggesting a potential downside of 0.57%. Given J.Jill’s stronger consensus rating and higher probable upside, research analysts clearly believe J.Jill is more favorable than Digital Brands Group.

Earnings and Valuation

This table compares J.Jill and Digital Brands Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
J.Jill	$596.55 million	0.61	$27.89 million	$1.79	13.77
Digital Brands Group	$7.38 million	0.34	-$28.25 million	($88.79)	-0.03

J.Jill has higher revenue and earnings than Digital Brands Group. Digital Brands Group 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

40.7% of J.Jill shares are held by institutional investors. Comparatively, 1.6% of Digital Brands Group shares are held by institutional investors. 4.4% of J.Jill shares are held by insiders. Comparatively, 0.0% of Digital Brands Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

J.Jill beats Digital Brands Group on 14 of the 14 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 Digital Brands Group

Digital Brands Group, Inc. engages in the provision of apparel products under various brands on direct-to-consumer and wholesale basis. It operates through DSTLD, Bailey, H&J, Stateside, and Sundry segments. The company designs, manufactures, and sells women's apparel, such as tops, sweaters, dresses, jumpsuits, bottoms, sets, jackets, rompers, suiting, sportswear, shirts, jackets, pants, shorts, polos, T-shirts, skirts, athleisure bottoms, denims, and other accessory products, as well as suiting for men. It sells its products under the Bailey 44, Harper & Jones, Stateside, Sunnyside, DSTLD, Sundry, and ACE Studios brand names. The company sells directly to the consumer through its websites, as well as through its wholesale channel in specialty stores, select department stores, and own showrooms. Digital Brands Group, Inc. was formerly known as Denim.LA, Inc. Digital Brands Group, Inc. was incorporated in 2012 and is headquartered in Austin, Texas.