Financial Comparison: FIGS (NYSE:FIGS) & PetMed Express (NASDAQ:PETS)

FIGS (NYSE:FIGS) and PetMed Express (NASDAQ:PETS) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, profitability, valuation and institutional ownership.

Volatility and Risk

FIGS has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500. Comparatively, PetMed Express has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for FIGS and PetMed Express, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FIGS	0	4	8	0	2.67
PetMed Express	3	0	0	0	1.00

FIGS presently has a consensus target price of $21.62, suggesting a potential downside of 2.00%. PetMed Express has a consensus target price of $1.40, suggesting a potential upside of 48.90%. Given PetMed Express’ higher probable upside, analysts plainly believe PetMed Express is more favorable than FIGS.

Valuation and Earnings

This table compares FIGS and PetMed Express”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FIGS	$631.10 million	5.80	$34.25 million	$0.38	58.07
PetMed Express	$179.02 million	0.12	-$57.29 million	($1.28)	-0.73

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

Insider & Institutional Ownership

92.2% of FIGS shares are owned by institutional investors. Comparatively, 73.3% of PetMed Express shares are owned by institutional investors. 27.1% of FIGS shares are owned by company insiders. Comparatively, 1.3% of PetMed Express shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares FIGS and PetMed Express’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FIGS	9.67%	14.65%	11.02%
PetMed Express	-16.97%	-107.14%	-37.21%

Summary

FIGS beats PetMed Express on 12 of the 13 factors compared between the two stocks.

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.

About PetMed Express

PetMed Express, Inc., doing business as PetMeds, is an online retailer of prescription and nonprescription medications and health products for dogs, cats and other household pets. The company offers products used to treat or prevent conditions such as allergies, infections, parasites and chronic illnesses, including prescription medicines, flea and tick treatments, heartworm preventatives, supplements and other animal-health products. In addition to medications, PetMeds sells pet food, treats, vitamins, wellness products and selected supplies.