Critical Survey: FIGS (NYSE:FIGS) versus Winmark (NASDAQ:WINA)

FIGS (NYSE:FIGS) and Winmark (NASDAQ:WINA) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, risk and valuation.

Volatility & Risk

FIGS has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, Winmark has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500.

Institutional and Insider Ownership

92.2% of FIGS shares are owned by institutional investors. Comparatively, 73.3% of Winmark shares are owned by institutional investors. 27.1% of FIGS shares are owned by insiders. Comparatively, 10.4% of Winmark shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for FIGS and Winmark, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FIGS	0	4	8	0	2.67
Winmark	0	1	0	0	2.00

FIGS currently has a consensus price target of $21.62, indicating a potential downside of 8.17%. Given FIGS’s stronger consensus rating and higher possible upside, equities research analysts clearly believe FIGS is more favorable than Winmark.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FIGS	$749.11 million	5.22	$34.25 million	$0.38	61.97
Winmark	$86.06 million	11.36	$41.65 million	$11.21	24.50

Winmark has lower revenue, but higher earnings than FIGS. Winmark 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 Winmark’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FIGS	9.67%	14.65%	11.02%
Winmark	45.13%	-94.74%	111.43%

Summary

FIGS beats Winmark on 9 of the 14 factors compared between the two stocks.

About FIGS

FIGS, Inc. designs and sells apparel and accessories for healthcare professionals. Its products include scrubs, underscrubs, lab coats, outerwear, footwear, compression socks and other work-related accessories, with an emphasis on functional design and performance fabrics. The company primarily sells through its e-commerce platform, serving healthcare workers in the United States and internationally. Its offerings are aimed at professionals across a range of medical roles and care settings. FIGS was founded in 2013 by Heather Hasson and Trina Spear.

About Winmark

Winmark Corporation is a franchisor focused on resale retail. Its franchise brands include Plato’s Closet, Once Upon A Child, Play It Again Sports, Style Encore and Music Go Round. The stores buy and sell secondhand clothing, children’s goods, sporting equipment, musical instruments and related merchandise. Founded in 1988 as Grow Biz International, the company adopted the Winmark name in 2001. Its franchise network serves communities in the United States and Canada, with Winmark providing franchisees with brand systems and business support.