Head to Head Analysis: Sportsman’s Warehouse (NASDAQ:SPWH) vs. FIGS (NYSE:FIGS)

Sportsman’s Warehouse (NASDAQ:SPWH) and FIGS (NYSE:FIGS) are both retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, earnings, dividends and risk.

Profitability

This table compares Sportsman’s Warehouse and FIGS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sportsman’s Warehouse	-3.05%	-7.20%	-1.72%
FIGS	5.43%	8.41%	6.33%

Analyst Recommendations

This is a summary of current ratings for Sportsman’s Warehouse and FIGS, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sportsman’s Warehouse	1	1	4	0	2.50
FIGS	0	5	3	2	2.70

Sportsman’s Warehouse currently has a consensus price target of $2.95, suggesting a potential upside of 104.86%. FIGS has a consensus price target of $12.25, suggesting a potential downside of 27.69%. Given Sportsman’s Warehouse’s higher probable upside, equities research analysts clearly believe Sportsman’s Warehouse is more favorable than FIGS.

Insider & Institutional Ownership

83.0% of Sportsman’s Warehouse shares are held by institutional investors. Comparatively, 92.2% of FIGS shares are held by institutional investors. 2.7% of Sportsman’s Warehouse shares are held by insiders. Comparatively, 29.4% of FIGS shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Sportsman’s Warehouse and FIGS”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sportsman’s Warehouse	$1.20 billion	0.05	-$33.06 million	($0.97)	-1.48
FIGS	$581.03 million	4.80	$34.25 million	$0.19	89.16

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

Volatility and Risk

Sportsman’s Warehouse has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500. Comparatively, FIGS has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500.

Summary

FIGS beats Sportsman’s Warehouse on 12 of the 15 factors compared between the two stocks.

About Sportsman’s Warehouse

Sportsman’s Warehouse Holdings, Inc. engages in the retail of sporting and athletic goods. Its products include hunting and shooting, archery, fishing, camping, boating accessories, optics and electronics, knives and tools, and footwear. The company was founded in 1986 and is headquartered in West Jordan, UT.

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.