Abercrombie & Fitch (NYSE:ANF) vs. FIGS (NYSE:FIGS) Critical Survey

Abercrombie & Fitch (NYSE:ANF) and FIGS (NYSE:FIGS) are both retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, risk and valuation.

Risk and Volatility

Abercrombie & Fitch has a beta of 1.45, meaning that its stock price is 45% more volatile than the S&P 500. Comparatively, FIGS has a beta of 1.33, meaning that its stock price is 33% more volatile than the S&P 500.

Institutional & Insider Ownership

92.2% of FIGS shares are held by institutional investors. 2.3% of Abercrombie & Fitch shares are held by company insiders. Comparatively, 29.4% of FIGS shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and target prices for Abercrombie & Fitch and FIGS, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Abercrombie & Fitch	1	5	5	0	2.36
FIGS	2	3	2	0	2.00

Abercrombie & Fitch currently has a consensus price target of $109.89, indicating a potential upside of 52.17%. FIGS has a consensus price target of $6.10, indicating a potential downside of 21.64%. Given Abercrombie & Fitch’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Abercrombie & Fitch is more favorable than FIGS.

Earnings and Valuation

This table compares Abercrombie & Fitch and FIGS”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Abercrombie & Fitch	$4.95 billion	0.69	$566.22 million	$10.57	6.83
FIGS	$555.56 million	2.29	$2.72 million	$0.04	194.63

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

Profitability

This table compares Abercrombie & Fitch and FIGS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Abercrombie & Fitch	10.61%	40.02%	15.80%
FIGS	1.26%	1.84%	1.37%

Summary

Abercrombie & Fitch beats FIGS on 10 of the 14 factors compared between the two stocks.

About Abercrombie & Fitch

Abercrombie & Fitch Co. engages in the retail of apparel, personal care products, and accessories. The firm operates through following geographical segments: Americas, EMEA and APAC. The Americas segment includes operations in North America and South America. The EMEA segment includes operations in Europe, the Middle East and Africa. The APAC segment includes operations in the Asia-Pacific region, including Asia and Oceania. The company was founded by David Abercrombie in 1892 and is headquartered in New Albany, OH.

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.