GrowGeneration (NASDAQ:GRWG) versus J.Jill (NYSE:JILL) Critical Contrast

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

Analyst Recommendations

This is a breakdown of recent recommendations for J.Jill and GrowGeneration, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
J.Jill	0	5	2	0	2.29
GrowGeneration	1	1	1	0	2.00

J.Jill presently has a consensus price target of $23.75, suggesting a potential downside of 1.17%. GrowGeneration has a consensus price target of $2.50, suggesting a potential upside of 57.73%. Given GrowGeneration’s higher possible upside, analysts clearly believe GrowGeneration is more favorable than J.Jill.

Volatility & Risk

J.Jill has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500. Comparatively, GrowGeneration has a beta of 2.56, suggesting that its stock price is 156% more volatile than the S&P 500.

Institutional & Insider Ownership

40.7% of J.Jill shares are owned by institutional investors. Comparatively, 36.0% of GrowGeneration shares are owned by institutional investors. 4.4% of J.Jill shares are owned by company insiders. Comparatively, 8.1% of GrowGeneration shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares J.Jill and GrowGeneration”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
J.Jill	$596.55 million	0.60	$27.89 million	$1.79	13.42
GrowGeneration	$161.74 million	0.58	-$24.05 million	($0.27)	-5.87

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

Profitability

This table compares J.Jill and GrowGeneration’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%
GrowGeneration	-10.07%	-17.44%	-11.52%

Summary

J.Jill beats GrowGeneration on 11 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 GrowGeneration

GrowGeneration Corp., through its subsidiaries, owns and operates retail hydroponic and organic gardening stores in the United States. The company engages in the marketing and distribution of nutrients, additives, growing media, lighting, and environmental control systems, as well as other indoor and outdoor growing products. It operates a chain of stores in California, Colorado, Michigan, Maine, Oklahoma, Oregon, Washington, Montana, New York, Ohio, Mississippi, Missouri, Arizona, Rhode Island, Florida, Massachusetts, Virginia, New Jersey, and New Mexico, as well as growgeneration.com, an online superstore for cultivators, a wholesale business for resellers, HRG Distribution, and benching, racking, and storage solutions and MMI. The company was formerly known as Easylife Corp. GrowGeneration Corp. was founded in 2008 and is based in Greenwood Village, Colorado.