Fossil Group (NASDAQ:FOSL – Get Free Report) and FIGS (NYSE:FIGS – Get Free Report) are both small-cap retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.
Earnings & Valuation
This table compares Fossil Group and FIGS”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Fossil Group | $1.15 billion | 0.20 | -$102.67 million | ($1.27) | -3.23 |
| FIGS | $555.56 million | 3.43 | $2.72 million | $0.10 | 115.81 |
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Fossil Group and FIGS, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fossil Group | 1 | 0 | 1 | 0 | 2.00 |
| FIGS | 1 | 5 | 2 | 1 | 2.33 |
Fossil Group currently has a consensus price target of $5.00, suggesting a potential upside of 21.95%. FIGS has a consensus price target of $9.70, suggesting a potential downside of 16.24%. Given Fossil Group’s higher probable upside, analysts clearly believe Fossil Group is more favorable than FIGS.
Profitability
This table compares Fossil Group and FIGS’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Fossil Group | -6.32% | -18.08% | -3.11% |
| FIGS | 3.03% | 4.50% | 3.37% |
Institutional & Insider Ownership
61.1% of Fossil Group shares are held by institutional investors. Comparatively, 92.2% of FIGS shares are held by institutional investors. 2.9% of Fossil Group shares are held by company insiders. Comparatively, 29.4% of FIGS shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Risk & Volatility
Fossil Group has a beta of 1.61, meaning that its share price is 61% more volatile than the S&P 500. Comparatively, FIGS has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500.
Summary
FIGS beats Fossil Group on 12 of the 15 factors compared between the two stocks.
About Fossil Group
Fossil Group, Inc., together with its subsidiaries, designs, develops, markets, and distributes consumer fashion accessories in the United States, Europe, Asia, and internationally. The company’s products include traditional watches, smartwatches, jewelry, handbags, small leather goods, belts, and sunglasses. It also manufactures and distributes private label brands, as well as branded products purchased for resell in other branded retail stores. The company offers its products under its proprietary brands, such as FOSSIL, SKAGEN, MICHELE, RELIC, and ZODIAC; and under the licensed brands, including ARMANI EXCHANGE, DIESEL, DKNY, EMPORIO ARMANI, KATE SPADE NEW YORK, MICHAEL KORS, TORY BURCH, and Skechers. The company sells its products through company-owned retail and outlet stores, department and specialty retail stores, mass market stores, e-commerce sites, licensed and franchised FOSSIL retail stores, and retail concessions, as well as sells its products on airlines. The company was formerly known as Fossil, Inc. and changed its name to Fossil Group, Inc. in May 2013. Fossil Group, Inc. was founded in 1984 and is headquartered in Richardson, Texas.
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.
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