Contrasting FIGS (NYSE:FIGS) & Stitch Fix (NASDAQ:SFIX)

FIGS (NYSE:FIGSGet Free Report) and Stitch Fix (NASDAQ:SFIXGet Free Report) are both small-cap retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, analyst recommendations, risk, earnings and dividends.

Earnings & Valuation

This table compares FIGS and Stitch Fix”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FIGS $555.56 million 3.63 $2.72 million $0.10 122.55
Stitch Fix $1.27 billion 0.58 -$28.74 million ($0.16) -34.44

FIGS has higher earnings, but lower revenue than Stitch Fix. Stitch Fix is trading at a lower price-to-earnings ratio than FIGS, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares FIGS and Stitch Fix’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FIGS 3.03% 4.50% 3.37%
Stitch Fix -2.23% -14.38% -5.88%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for FIGS and Stitch Fix, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FIGS 1 5 2 1 2.33
Stitch Fix 1 4 1 0 2.00

FIGS currently has a consensus price target of $9.70, indicating a potential downside of 20.85%. Stitch Fix has a consensus price target of $6.00, indicating a potential upside of 8.89%. Given Stitch Fix’s higher probable upside, analysts clearly believe Stitch Fix is more favorable than FIGS.

Institutional and Insider Ownership

92.2% of FIGS shares are held by institutional investors. Comparatively, 71.0% of Stitch Fix shares are held by institutional investors. 29.4% of FIGS shares are held by company insiders. Comparatively, 16.1% of Stitch Fix shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

FIGS has a beta of 1.3, suggesting that its stock price is 30% more volatile than the S&P 500. Comparatively, Stitch Fix has a beta of 2.1, suggesting that its stock price is 110% more volatile than the S&P 500.

Summary

FIGS beats Stitch Fix on 12 of the 15 factors compared between the two stocks.

About FIGS

(Get Free Report)

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 Stitch Fix

(Get Free Report)

Stitch Fix, Inc. sells a range of apparel, shoes, and accessories for men, women, and kids through its website and mobile application in the United States and the United Kingdom. It offers denim, dresses, blouses, skirts, shoes, jewelry, and handbags under the Stitch Fix brand. The company was formerly known as rack habit inc. and changed its name to Stitch Fix, Inc. in October 2011. Stitch Fix, Inc. was incorporated in 2011 and is headquartered in San Francisco, California.

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