Financial Contrast: J.Jill (NYSE:JILL) vs. Zalando (OTCMKTS:ZLNDY)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Zalando	0.89%	4.15%	1.32%
J.Jill	3.56%	24.44%	6.81%

Risk & Volatility

Zalando has a beta of 1.51, suggesting that its stock price is 51% more volatile than the S&P 500. Comparatively, J.Jill has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zalando	$13.97 billion	0.59	$243.36 million	$0.26	61.08
J.Jill	$596.55 million	0.42	$27.89 million	$1.37	12.21

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

Analyst Ratings

This is a breakdown of current recommendations for Zalando and J.Jill, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zalando	0	3	2	1	2.67
J.Jill	0	5	2	0	2.29

J.Jill has a consensus target price of $15.50, indicating a potential downside of 7.34%. Given J.Jill’s higher probable upside, analysts clearly believe J.Jill is more favorable than Zalando.

Insider & Institutional Ownership

40.7% of J.Jill shares are held by institutional investors. 4.4% of J.Jill shares are held 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.

About Zalando

Zalando SE operates an online platform for fashion and lifestyle products. The company operates through Fashion Store and Offprice segments. It provides shoes, apparel, accessories, and beauty products with free delivery and returns, as well as various payment options. The company also sells its products through Lounge by Zalando; and brick-and-mortar outlet stores. It operates in Germany, Austria, Switzerland, Belgium, Croatia, the Czech Republic, Denmark, Estonia, Finland, Hungary, France, Ireland, Italy, Latvia, Lithuania, Luxembourg, the Netherlands, Norway, Poland, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom. The company was founded in 2008 and is headquartered in Berlin, Germany.

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.