Head to Head Analysis: FIGS (NYSE:FIGS) & Hennes & Mauritz (OTCMKTS:HNNMY)

FIGS (NYSE:FIGS) and Hennes & Mauritz (OTCMKTS:HNNMY) are both retail/wholesale companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.

Profitability

This table compares FIGS and Hennes & Mauritz’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FIGS	1.26%	1.84%	1.37%
Hennes & Mauritz	4.35%	23.48%	5.70%

Institutional & Insider Ownership

92.2% of FIGS shares are held by institutional investors. Comparatively, 0.0% of Hennes & Mauritz shares are held by institutional investors. 29.4% of FIGS shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares FIGS and Hennes & Mauritz”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FIGS	$555.56 million	2.03	$2.72 million	$0.04	173.00
Hennes & Mauritz	$22.18 billion	0.93	$1.11 billion	$0.13	22.54

Hennes & Mauritz has higher revenue and earnings than FIGS. Hennes & Mauritz is trading at a lower price-to-earnings ratio than FIGS, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

FIGS has a beta of 1.34, meaning that its stock price is 34% more volatile than the S&P 500. Comparatively, Hennes & Mauritz has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for FIGS and Hennes & Mauritz, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FIGS	1	3	1	0	2.00
Hennes & Mauritz	1	4	0	1	2.17

FIGS currently has a consensus price target of $5.3750, indicating a potential downside of 22.33%. Given FIGS’s higher possible upside, equities research analysts plainly believe FIGS is more favorable than Hennes & Mauritz.

Summary

Hennes & Mauritz beats FIGS on 8 of the 15 factors compared between the two stocks.

About FIGS

FIGS, Inc. operates as a direct-to-consumer healthcare apparel and lifestyle company in the United States and internationally. It designs and sells healthcare apparel and scrubwear and non-scrubwear offerings, such as outerwear, underscrubs, footwear, compression socks, lab coats, loungewear, and other apparel. It also offers sports bras, performance leggings, tops, super-soft pima cotton tops, vests, fleeces, and jackets; necessities, scrub caps, lanyards, badge reels, tote bags, baseball caps, and beanies. The company markets and sells its products to healthcare professionals through its direct-to-consumer digital platform comprising website, mobile app, and B2B business, as well as retail store. FIGS, Inc. was founded in 2013 and is headquartered in Santa Monica, California. FIGS, Inc.

About Hennes & Mauritz

H & M Hennes & Mauritz AB (publ) provides clothing, accessories, footwear, cosmetics, home textiles, and homeware for women, men, and children worldwide. It offers sportswear, shoes, bags, beauty products, activewear, jeans, and ready-to-wear; and interior products, including bed linens, dinnerware, textiles, furniture, and lighting. The company provides its products under the H&M, H&M HOME, H&M Move, H&M Beauty, COS, Weekday, Monki, & Other Stories, ARKET, Afound, and Singular Society brand names. In addition, it operates Sellpy, a broad digital platform for second-hand fashion and other products; and Creator Studio, a global platform for merchandise design and production, as well as provides solutions to extend the useful life of unwanted garments through reuse and recycling under Looper Textile name. The company offers its products through online and physical stores. H & M Hennes & Mauritz AB (publ) was incorporated in 1943 and is headquartered in Stockholm, Sweden.