Head to Head Comparison: Group 1 Automotive (NYSE:GPI) and FIGS (NYSE:FIGS)

Group 1 Automotive (NYSE:GPI) and FIGS (NYSE:FIGS) are both mid-cap consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Analyst Recommendations

This is a summary of current ratings for Group 1 Automotive and FIGS, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Group 1 Automotive	2	3	5	0	2.30
FIGS	0	5	6	0	2.55

Group 1 Automotive presently has a consensus target price of $373.38, suggesting a potential upside of 50.45%. FIGS has a consensus target price of $18.71, suggesting a potential upside of 49.98%. Given Group 1 Automotive’s higher probable upside, research analysts plainly believe Group 1 Automotive is more favorable than FIGS.

Profitability

This table compares Group 1 Automotive and FIGS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Group 1 Automotive	1.31%	15.66%	4.43%
FIGS	8.72%	12.53%	9.52%

Insider and Institutional Ownership

99.9% of Group 1 Automotive shares are held by institutional investors. Comparatively, 92.2% of FIGS shares are held by institutional investors. 2.4% of Group 1 Automotive shares are held by company insiders. Comparatively, 27.1% of FIGS shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Group 1 Automotive and FIGS”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Group 1 Automotive	$22.57 billion	0.13	$325.20 million	$24.01	10.34
FIGS	$631.10 million	3.28	$34.25 million	$0.33	37.81

Group 1 Automotive has higher revenue and earnings than FIGS. Group 1 Automotive is trading at a lower price-to-earnings ratio than FIGS, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Group 1 Automotive has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, FIGS has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500.

Summary

FIGS beats Group 1 Automotive on 8 of the 14 factors compared between the two stocks.

About Group 1 Automotive

Group 1 Automotive, Inc., through its subsidiaries, operates in the automotive retail industry in the United States and the United Kingdom. The company sells new and used cars, light trucks, and vehicle parts, as well as service and insurance contracts; arranges related vehicle financing; and offers automotive maintenance and repair services. Group 1 Automotive, Inc. was incorporated in 1995 and is headquartered in Houston, Texas.

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.