J.Jill (NYSE:JILL) & Industria de Diseno Textil (OTCMKTS:IDEXY) Critical Review

Industria de Diseno Textil (OTCMKTS:IDEXY) and J.Jill (NYSE:JILL) are both retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, analyst recommendations and earnings.

Institutional and Insider 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 large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

Industria de Diseno Textil pays an annual dividend of $0.29 per share and has a dividend yield of 1.8%. J.Jill pays an annual dividend of $0.32 per share and has a dividend yield of 2.0%. Industria de Diseno Textil pays out 55.8% of its earnings in the form of a dividend. J.Jill pays out 13.4% 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 raised its dividend for 1 consecutive years. J.Jill is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

Industria de Diseno Textil has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500. Comparatively, J.Jill has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500.

Earnings & Valuation

This table compares Industria de Diseno Textil and J.Jill”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Industria de Diseno Textil	$41.81 billion	4.76	$6.32 billion	$0.52	30.69
J.Jill	$610.86 million	0.40	$39.48 million	$2.39	6.77

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

Profitability

This table compares Industria de Diseno Textil and J.Jill’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Industria de Diseno Textil	15.40%	33.70%	17.78%
J.Jill	6.12%	40.48%	10.50%

Analyst Recommendations

This is a breakdown of current ratings for Industria de Diseno Textil and J.Jill, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Industria de Diseno Textil	0	0	1	4	3.80
J.Jill	1	4	2	0	2.14

J.Jill has a consensus target price of $20.00, suggesting a potential upside of 23.53%. Given J.Jill’s higher probable upside, analysts clearly believe J.Jill is more favorable than Industria de Diseno Textil.

About Industria de Diseno Textil

Industria de Diseño Textil, S.A. engages in the retail and online distribution of clothing, footwear, accessories, and household products. The company sells its products under the Zara, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, and Zara Home brands. It is also involved in the textile manufacturing, logistics, design, insurance, construction, and real estate businesses, as well as provides financial services. The company operates in Spain, rest of Europe, the Americas, Asia, and internationally. Industria de Diseño Textil, S.A. was founded in 1963 and is headquartered in A Coruña, Spain.

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.