Analyzing FIGS (NYSE:FIGS) and TJX Companies (NYSE:TJX)

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

Risk and Volatility

TJX Companies has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500. Comparatively, FIGS has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500.

Valuation & Earnings

This table compares TJX Companies and FIGS”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TJX Companies	$60.37 billion	2.64	$5.49 billion	$5.41	26.75
FIGS	$631.10 million	5.76	$34.25 million	$0.33	66.30

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

Institutional and Insider Ownership

91.1% of TJX Companies shares are held by institutional investors. Comparatively, 92.2% of FIGS shares are held by institutional investors. 0.2% of TJX Companies shares are held by insiders. Comparatively, 27.1% of FIGS shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TJX Companies	9.73%	56.56%	15.92%
FIGS	8.72%	12.53%	9.52%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TJX Companies	0	4	21	0	2.84
FIGS	0	4	7	0	2.64

TJX Companies presently has a consensus price target of $174.95, suggesting a potential upside of 20.90%. FIGS has a consensus price target of $20.14, suggesting a potential downside of 7.94%. Given TJX Companies’ stronger consensus rating and higher possible upside, research analysts clearly believe TJX Companies is more favorable than FIGS.

Summary

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

About TJX Companies

The TJX Companies, Inc., together with its subsidiaries, operates as an off-price apparel and home fashions retailer in the United States, Canada, Europe, and Australia. It operates through four segments: Marmaxx, HomeGoods, TJX Canada, and TJX International. The company sells family apparel, including footwear and accessories; home fashions, such as home basics, furniture, rugs, lighting products, giftware, soft home products, decorative accessories, tabletop, and cookware, as well as expanded pet, and gourmet food departments; jewelry and accessories; and other merchandise. It offers its products through stores and e-commerce sites. The TJX Companies, Inc. was incorporated in 1962 and is headquartered in Framingham, Massachusetts.

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.