Williams-Sonoma (NYSE:WSM) vs. FIGS (NYSE:FIGS) Critical Analysis

Williams-Sonoma (NYSE:WSM) and FIGS (NYSE:FIGS) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, profitability, valuation, analyst recommendations, dividends and institutional ownership.

Profitability

This table compares Williams-Sonoma and FIGS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Williams-Sonoma	14.73%	53.48%	20.50%
FIGS	8.72%	12.53%	9.52%

Valuation & Earnings

This table compares Williams-Sonoma and FIGS”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Williams-Sonoma	$7.81 billion	3.55	$1.09 billion	$9.77	24.06
FIGS	$631.10 million	4.08	$34.25 million	$0.33	47.00

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

Risk & Volatility

Williams-Sonoma has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500. Comparatively, FIGS has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Williams-Sonoma and FIGS, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Williams-Sonoma	0	9	8	1	2.56
FIGS	0	5	6	0	2.55

Williams-Sonoma presently has a consensus target price of $244.44, suggesting a potential upside of 3.99%. FIGS has a consensus target price of $18.71, suggesting a potential upside of 20.66%. Given FIGS’s higher possible upside, analysts plainly believe FIGS is more favorable than Williams-Sonoma.

Insider & Institutional Ownership

99.3% of Williams-Sonoma shares are held by institutional investors. Comparatively, 92.2% of FIGS shares are held by institutional investors. 1.1% of Williams-Sonoma shares are held by insiders. Comparatively, 27.1% of FIGS shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Williams-Sonoma beats FIGS on 11 of the 15 factors compared between the two stocks.

About Williams-Sonoma

Williams-Sonoma, Inc. operates as an omni-channel specialty retailer of various products for home. It offers cooking, dining, and entertaining products, such as cookware, tools, electrics, cutlery, tabletop and bar, outdoor, furniture, and a library of cookbooks under the Williams Sonoma Home brand, as well as home furnishings and decorative accessories under the Williams Sonoma lifestyle brand; and furniture, bedding, lighting, rugs, table essentials, and decorative accessories under the Pottery Barn brand. The company also provides home decor products under the West Elm brand; kids accessories under the Pottery Barn Kids brand; and an organic bedding to multi-purpose furniture under the Pottery Barn Teen brand. In addition, it offers made-to-order lighting, hardware, furniture, and home decors inspired by history under the Rejuvenation brand; personalized products and custom gifts under the Mark and Graham brand; and colorful and vintage-inspired heirloom products under the GreenRow, as well as operates a 3-D imaging and augmented reality platform for the home furnishings and décor industry under the Outward brand. The company markets its products through e-commerce websites, direct-mail catalogs, and retail stores. Williams-Sonoma, Inc. was founded in 1956 and is headquartered in San Francisco, California.

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.