Head-To-Head Comparison: Figma (FIG) versus Its Competitors

Figma (NYSE:FIG) is one of 959 public companies in the “Software” industry, but how does it compare to its peers? We will compare Figma to related businesses based on the strength of its risk, valuation, dividends, analyst recommendations, institutional ownership, profitability and earnings.

Earnings & Valuation

This table compares Figma and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Figma	$1.06 billion	-$1.25 billion	-17.65
Figma Competitors	$1.79 billion	$382.68 million	112.21

Figma’s peers have higher revenue and earnings than Figma. Figma is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

Figma has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500. Comparatively, Figma’s peers have a beta of 1.35, indicating that their average stock price is 35% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Figma and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Figma	1	11	4	0	2.19
Figma Competitors	5840	21618	45012	1501	2.57

Figma currently has a consensus target price of $28.80, indicating a potential upside of 52.51%. As a group, “Software” companies have a potential upside of 28.34%. Given Figma’s higher probable upside, equities analysts plainly believe Figma is more favorable than its peers.

Insider & Institutional Ownership

41.5% of shares of all “Software” companies are owned by institutional investors. 32.3% of Figma shares are owned by insiders. Comparatively, 19.9% of shares of all “Software” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Figma and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Figma	-40.21%	-32.80%	-20.72%
Figma Competitors	-599.60%	26.31%	-8.93%

Summary

Figma peers beat Figma on 10 of the 13 factors compared.

Figma Company Profile

Figma, Inc. develops browser-based software for designing and building digital products. Its platform supports collaborative interface design, interactive prototyping and workflows that help teams plan, create and refine websites, apps and other digital experiences. Figma’s products include Figma Design for interface design and prototyping, FigJam for online whiteboarding and brainstorming, and Dev Mode, which helps developers inspect designs and access implementation details. Figma Slides provides tools for creating and presenting slide decks.