Critical Analysis: J.Jill (NYSE:JILL) and FIGS (NYSE:FIGS)

J.Jill (NYSE:JILL) and FIGS (NYSE:FIGS) are both small-cap retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, valuation, earnings and dividends.

Profitability

This table compares J.Jill and FIGS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
J.Jill	6.12%	40.48%	10.50%
FIGS	3.03%	4.50%	3.37%

Valuation & Earnings

This table compares J.Jill and FIGS”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
J.Jill	$610.86 million	0.39	$39.48 million	$2.39	6.60
FIGS	$555.56 million	2.90	$2.72 million	$0.10	97.90

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for J.Jill and FIGS, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
J.Jill	1	4	2	0	2.14
FIGS	1	5	1	1	2.25

J.Jill presently has a consensus target price of $20.00, indicating a potential upside of 26.74%. FIGS has a consensus target price of $8.60, indicating a potential downside of 12.16%. Given J.Jill’s higher probable upside, analysts clearly believe J.Jill is more favorable than FIGS.

Volatility & Risk

J.Jill has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500. Comparatively, FIGS has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500.

Insider & Institutional Ownership

40.7% of J.Jill shares are owned by institutional investors. Comparatively, 92.2% of FIGS shares are owned by institutional investors. 6.7% of J.Jill shares are owned by insiders. Comparatively, 29.4% of FIGS shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

J.Jill beats FIGS on 8 of the 15 factors compared between the two stocks.

About J.Jill

J.Jill, Inc. operates as an omnichannel retailer for women's apparel under the J.Jill brand in the United States. It offers apparel, footwear, and accessories, including scarves and jewelry. The company markets its products through retail stores, website, and catalogs. J.Jill, Inc. was founded in 1959 and is headquartered in Quincy, Massachusetts.

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.