Critical Comparison: FIGS (NYSE:FIGS) vs. Signet Jewelers (NYSE:SIG)

Signet Jewelers (NYSE:SIG) and FIGS (NYSE:FIGS) are both mid-cap consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.

Volatility & Risk

Signet Jewelers has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, FIGS has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500.

Institutional and Insider Ownership

92.2% of FIGS shares are held by institutional investors. 1.2% of Signet Jewelers shares are held by insiders. Comparatively, 27.1% of FIGS shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Signet Jewelers	5.19%	23.28%	7.61%
FIGS	9.67%	14.65%	11.02%

Analyst Recommendations

This is a summary of recent recommendations for Signet Jewelers and FIGS, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Signet Jewelers	0	6	6	0	2.50
FIGS	0	4	8	0	2.67

Signet Jewelers currently has a consensus target price of $125.56, suggesting a potential upside of 4.56%. FIGS has a consensus target price of $21.62, suggesting a potential downside of 7.38%. Given Signet Jewelers’ higher probable upside, equities research analysts clearly believe Signet Jewelers is more favorable than FIGS.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Signet Jewelers	$6.82 billion	0.67	$294.40 million	$8.68	13.83
FIGS	$749.11 million	5.18	$34.25 million	$0.38	61.44

Signet Jewelers has higher revenue and earnings than FIGS. Signet Jewelers 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 Signet Jewelers on 8 of the 13 factors compared between the two stocks.

About Signet Jewelers

Signet Jewelers is a specialty jewelry retailer that sells diamond, bridal and fashion jewelry, watches, and related services through a portfolio of retail brands. Its brands include Kay Jewelers, Zales, Jared, Banter by Piercing Pagoda, James Allen, Blue Nile, H.Samuel, Ernest Jones, and Peoples Jewellers. The company serves customers through stores and online channels in the United States, Canada, and the United Kingdom. Its offerings include engagement and wedding jewelry, jewelry repair, customization, and piercing services.

About FIGS

FIGS, Inc. designs and sells apparel and accessories for healthcare professionals. Its products include scrubs, underscrubs, lab coats, outerwear, footwear, compression socks and other work-related accessories, with an emphasis on functional design and performance fabrics. The company primarily sells through its e-commerce platform, serving healthcare workers in the United States and internationally. Its offerings are aimed at professionals across a range of medical roles and care settings. FIGS was founded in 2013 by Heather Hasson and Trina Spear.