Contrasting FIGS (NYSE:FIGS) and Duluth (NASDAQ:DLTH)

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

Analyst Ratings

This is a breakdown of current ratings and target prices for Duluth and FIGS, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Duluth	1	2	0	1	2.25
FIGS	0	5	6	0	2.55

Duluth currently has a consensus price target of $5.00, suggesting a potential upside of 10.62%. FIGS has a consensus price target of $18.71, suggesting a potential upside of 29.60%. Given FIGS’s stronger consensus rating and higher possible upside, analysts clearly believe FIGS is more favorable than Duluth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Duluth	1.07%	-3.10%	-1.19%
FIGS	8.72%	12.53%	9.52%

Institutional & Insider Ownership

24.4% of Duluth shares are owned by institutional investors. Comparatively, 92.2% of FIGS shares are owned by institutional investors. 40.4% of Duluth shares are owned by insiders. Comparatively, 27.1% of FIGS shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Duluth has a beta of 1.38, meaning that its stock price is 38% more volatile than the S&P 500. Comparatively, FIGS has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Duluth	$550.75 million	0.31	-$16.39 million	$0.14	32.29
FIGS	$631.10 million	3.80	$34.25 million	$0.33	43.76

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

Summary

FIGS beats Duluth on 12 of the 15 factors compared between the two stocks.

About Duluth

Duluth Holdings Inc. sells casual wear, workwear, and accessories for men and women under the Duluth Trading brand in the United States. It provides shirts, pants, underwear, tanks, outerwear, footwear, accessories, and hard goods. The company offers its products under various trademarks, trade names, and service marks, including Alaskan Hardgear, Armachillo, Ballroom, Bucket Master, Cab Commander, Crouch Gusset, Dry on the Fly, Duluth Trading Co, Duluthflex, Fire Hose, Longtail T, No-Yank, No Polo Shirt, Wild Boar Mocs, and Buck Naked. Duluth Holdings Inc. markets its products through its Website, catalogs, and retail stores. As of May 17, 2018, it operated 36 retail stores. The company was formerly known as GEMPLER'S, Inc. Duluth Holdings Inc. was founded in 1989 and is headquartered in Belleville, Wisconsin.

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.