Comparing Tilly’s (NYSE:TLYS) & J-Long Group (NASDAQ:JL)

J-Long Group (NASDAQ:JL) and Tilly’s (NYSE:TLYS) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, analyst recommendations, institutional ownership, profitability and risk.

Institutional & Insider Ownership

76.4% of Tilly’s shares are held by institutional investors. 27.1% of Tilly’s shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares J-Long Group and Tilly’s’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
J-Long Group	$28.38 million	0.38	N/A	N/A	N/A
Tilly’s	$623.08 million	0.25	-$34.49 million	($1.41)	-3.61

J-Long Group has higher earnings, but lower revenue than Tilly’s.

Analyst Recommendations

This is a breakdown of current ratings and price targets for J-Long Group and Tilly’s, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
J-Long Group	0	0	0	0	N/A
Tilly’s	0	3	0	0	2.00

Tilly’s has a consensus price target of $6.50, suggesting a potential upside of 27.70%. Given Tilly’s’ higher probable upside, analysts clearly believe Tilly’s is more favorable than J-Long Group.

Profitability

This table compares J-Long Group and Tilly’s’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
J-Long Group	N/A	N/A	N/A
Tilly’s	-6.85%	-14.38%	-4.75%

About J-Long Group

J-Long Group Limited distributes reflective and non-reflective garment trims in Asia, Hong Kong, the People's Republic of China, and internationally. The company offers heat transfers, fabrics, woven labels and tapes, sewing badges, piping, zipper pullers, and drawcords. It also sells through online. The company was founded in 1985 and is based in Tsuen Wan, Hong Kong.

About Tilly’s

Tilly's, Inc. operates as a specialty retailer of casual apparel, footwear, accessories, and hardgoods for young men and women, and boys and girls in the United States. Its apparel merchandise includes tops, outerwear, bottoms, swim, and dresses; and accessories merchandise comprises backpacks, hydration bottles, hats, sunglasses, small electronics and accessories, handbags, watches, jewelry, and others. The company also provides third-party merchandise assortment across its various product categories. The company sells its merchandise through its stores and e-commerce website, www.tillys.com. Tilly's, Inc. was founded in 1982 and is headquartered in Irvine, California.