Comparing Genesco (NYSE:GCO) & FIGS (NYSE:FIGS)

Genesco (NYSE:GCO) and FIGS (NYSE:FIGS) are both small-cap retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, earnings, analyst recommendations, risk, profitability, valuation and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Genesco	0.80%	2.66%	1.00%
FIGS	6.10%	9.69%	7.37%

Risk and Volatility

Genesco has a beta of 1.83, suggesting that its stock price is 83% more volatile than the S&P 500. Comparatively, FIGS has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Genesco and FIGS, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Genesco	0	4	0	1	2.40
FIGS	0	6	4	1	2.55

Genesco presently has a consensus target price of $36.67, suggesting a potential downside of 3.19%. FIGS has a consensus target price of $15.93, suggesting a potential upside of 38.26%. Given FIGS’s stronger consensus rating and higher possible upside, analysts clearly believe FIGS is more favorable than Genesco.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Genesco	$2.44 billion	0.17	$13.27 million	$1.73	21.89
FIGS	$666.10 million	2.89	$34.25 million	$0.22	52.37

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

Institutional & Insider Ownership

94.5% of Genesco shares are owned by institutional investors. Comparatively, 92.2% of FIGS shares are owned by institutional investors. 23.1% of Genesco shares are owned by insiders. Comparatively, 29.4% of FIGS shares are owned by 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 Genesco on 10 of the 14 factors compared between the two stocks.

About Genesco

Genesco Inc. operates as a retailer and wholesaler of footwear, apparel, and accessories in the United States, Puerto Rico, Canada, the United Kingdom, and the Republic of Ireland. The company operates through four segments: Journeys Group, Schuh Group, Johnston & Murphy Group, and Genesco Brands. The Journeys Group segment offers footwear and accessories through the Journeys, Journeys Kidz, and Little Burgundy retail chains, as well as through e-commerce and catalogs for young men, women, and children. Its Schuh Group segment operates Schuh retail footwear stores that offer casual and athletic footwear, as well as sells footwear through e-commerce. The Johnston & Murphy Group segment involved in the retail and e-commerce operations; and wholesale distribution of men’s dress and casual footwear, apparel, and accessories, as well as women’s footwear and accessories. Its Genesco Brands Group segment markets footwear under the Levi’s, Dockers, and G.H. Bass brands for men, women, and children, as well as designs and manufactures the STARTER brands footwear. The company operates through Journeys, Journeys Kidz, Schuh, Little Burgundy, and Johnston & Murphy brand names; and e-commerce websites, including journeys.com, journeyskidz.com, journeys.ca, schuh.co.uk, schuh.ie, schuh.eu, johnstonmurphy.com, littleburgundyshoes.com, johnstonmurphy.ca, nashvilleshoewarehouse.com, and dockersshoes.com. Genesco Inc. was incorporated in 1934 and is headquartered in Nashville, Tennessee.

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.