Reviewing FIGS (NYSE:FIGS) & Zalando (OTCMKTS:ZLNDY)

FIGS (NYSE:FIGS) and Zalando (OTCMKTS:ZLNDY) are both mid-cap retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings and price targets for FIGS and Zalando, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FIGS	0	5	4	2	2.73
Zalando	1	2	3	0	2.33

FIGS presently has a consensus target price of $15.93, indicating a potential upside of 9.81%. Given FIGS’s stronger consensus rating and higher probable upside, analysts plainly believe FIGS is more favorable than Zalando.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
FIGS	5.43%	8.41%	6.33%
Zalando	1.76%	7.85%	2.54%

Institutional and Insider Ownership

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

Earnings & Valuation

This table compares FIGS and Zalando”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FIGS	$631.10 million	3.82	$34.25 million	$0.19	76.35
Zalando	$13.97 billion	0.45	$243.36 million	$0.48	25.13

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

Volatility & Risk

FIGS has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500. Comparatively, Zalando has a beta of 1.52, meaning that its stock price is 52% more volatile than the S&P 500.

Summary

FIGS beats Zalando on 11 of the 15 factors compared between the two stocks.

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.

About Zalando

Zalando SE operates an online platform for fashion and lifestyle products. The company operates through Fashion Store and Offprice segments. It provides shoes, apparel, accessories, and beauty products with free delivery and returns, as well as various payment options. The company also sells its products through Lounge by Zalando; and brick-and-mortar outlet stores. It operates in Germany, Austria, Switzerland, Belgium, Croatia, the Czech Republic, Denmark, Estonia, Finland, Hungary, France, Ireland, Italy, Latvia, Lithuania, Luxembourg, the Netherlands, Norway, Poland, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom. The company was founded in 2008 and is headquartered in Berlin, Germany.