Head to Head Contrast: FIGS (NYSE:FIGS) and Destination XL Group (NASDAQ:DXLG)

FIGS (NYSE:FIGS) and Destination XL Group (NASDAQ:DXLG) are both small-cap retail/wholesale companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, risk, dividends, earnings and valuation.

Analyst Ratings

This is a summary of current ratings and target prices for FIGS and Destination XL Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FIGS	0	6	4	1	2.55
Destination XL Group	1	0	1	0	2.00

FIGS currently has a consensus price target of $15.93, indicating a potential upside of 35.30%. Destination XL Group has a consensus price target of $1.50, indicating a potential upside of 110.97%. Given Destination XL Group’s higher probable upside, analysts clearly believe Destination XL Group is more favorable than FIGS.

Volatility and Risk

FIGS has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500. Comparatively, Destination XL Group has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500.

Profitability

This table compares FIGS and Destination XL Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FIGS	6.10%	9.69%	7.37%
Destination XL Group	-8.25%	-8.96%	-3.03%

Valuation & Earnings

This table compares FIGS and Destination XL Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FIGS	$666.10 million	2.94	$34.25 million	$0.22	53.51
Destination XL Group	$435.02 million	0.09	-$35.91 million	($0.66)	-1.08

FIGS has higher revenue and earnings than Destination XL Group. Destination XL Group 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 held by institutional investors. Comparatively, 73.5% of Destination XL Group shares are held by institutional investors. 29.4% of FIGS shares are held by company insiders. Comparatively, 14.3% of Destination XL Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

FIGS beats Destination XL Group on 13 of the 15 factors compared between the two stocks.

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.

About Destination XL Group

Destination XL Group, Inc., together with its subsidiaries, operates as a specialty retailer of big and tall men’s clothing and shoes in the United States. The company’s stores offer sportswear and dresswear; fashion-neutral items, including jeans, casual pants, T-shirts, polo shirts, dress shirts, and suit separates; and casual clothing. It also provides vintage-screen T-shirts and wovens under various private labels. The company offers its products under the trade names of Destination XL, DXL, DXL Men’s Apparel, DXL outlets, Casual Male XL, and Casual Male XL outlets. The company was formerly known as Casual Male Retail Group, Inc. and changed its name to Destination XL Group, Inc. in February 2013. Destination XL Group, Inc. was incorporated in 1976 and is headquartered in Canton, Massachusetts.