Stitch Fix (NASDAQ:SFIX – Get Free Report) and FIGS (NYSE:FIGS – Get Free Report) are both small-cap retail/wholesale companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, earnings, profitability and risk.
Valuation and Earnings
This table compares Stitch Fix 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 | |
| Stitch Fix | $1.27 billion | 0.53 | -$28.74 million | ($0.16) | -31.13 |
| FIGS | $555.56 million | 3.49 | $2.72 million | $0.10 | 117.95 |
Institutional & Insider Ownership
71.0% of Stitch Fix shares are held by institutional investors. Comparatively, 92.2% of FIGS shares are held by institutional investors. 16.1% of Stitch Fix shares are held by company insiders. Comparatively, 29.4% of FIGS shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of recent recommendations for Stitch Fix and FIGS, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Stitch Fix | 1 | 4 | 1 | 0 | 2.00 |
| FIGS | 1 | 5 | 2 | 1 | 2.33 |
Stitch Fix presently has a consensus price target of $6.00, suggesting a potential upside of 20.48%. FIGS has a consensus price target of $9.60, suggesting a potential downside of 18.61%. Given Stitch Fix’s higher probable upside, equities research analysts clearly believe Stitch Fix is more favorable than FIGS.
Volatility and Risk
Stitch Fix has a beta of 2.1, meaning that its share price is 110% more volatile than the S&P 500. Comparatively, FIGS has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500.
Profitability
This table compares Stitch Fix and FIGS’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Stitch Fix | -2.23% | -14.38% | -5.88% |
| FIGS | 3.03% | 4.50% | 3.37% |
Summary
FIGS beats Stitch Fix on 12 of the 15 factors compared between the two stocks.
About Stitch Fix
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.
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.
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