Critical Comparison: Digital Brands Group (NASDAQ:DBGI) & J.Jill (NYSE:JILL)

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

Analyst Ratings

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

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

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

Profitability

This table compares Digital Brands Group and J.Jill’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Digital Brands Group	-768.25%	-561.70%	-90.27%
J.Jill	4.62%	28.51%	8.13%

Volatility and Risk

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

Institutional & Insider Ownership

1.6% of Digital Brands Group shares are owned by institutional investors. Comparatively, 40.7% of J.Jill shares are owned by institutional investors. 0.0% of Digital Brands Group shares are owned by company insiders. Comparatively, 4.4% of J.Jill shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

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

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

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.

Summary

J.Jill beats Digital Brands Group on 14 of the 14 factors compared between the two stocks.

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.

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.