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

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tilly’s	-6.65%	-14.14%	-4.68%
J-Long Group	N/A	N/A	N/A

Institutional and Insider Ownership

76.4% of Tilly’s shares are owned by institutional investors. 27.1% of Tilly’s shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tilly’s	$623.08 million	0.24	-$34.49 million	($1.41)	-3.52
J-Long Group	$28.38 million	0.43	N/A	N/A	N/A

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Tilly’s and J-Long Group, as reported by MarketBeat.

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

Tilly’s currently has a consensus price target of $6.00, indicating a potential upside of 20.72%. Given Tilly’s’ higher possible upside, equities analysts plainly believe Tilly’s is more favorable than J-Long Group.

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.

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.