Comparing Torrid (NYSE:CURV) & FIGS (NYSE:FIGS)

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

Analyst Recommendations

This is a summary of recent recommendations for FIGS and Torrid, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FIGS	0	5	6	0	2.55
Torrid	2	5	1	0	1.88

FIGS presently has a consensus price target of $18.71, suggesting a potential upside of 18.93%. Torrid has a consensus price target of $1.81, suggesting a potential downside of 27.90%. Given FIGS’s stronger consensus rating and higher probable upside, equities analysts plainly believe FIGS is more favorable than Torrid.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
FIGS	8.72%	12.53%	9.52%
Torrid	-0.94%	N/A	-4.49%

Institutional & Insider Ownership

92.2% of FIGS shares are held by institutional investors. Comparatively, 81.8% of Torrid shares are held by institutional investors. 27.1% of FIGS shares are held by company insiders. Comparatively, 6.5% of Torrid shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares FIGS and Torrid”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FIGS	$631.10 million	4.14	$34.25 million	$0.33	47.68
Torrid	$1.00 billion	0.25	-$7.03 million	($0.09)	-27.93

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

Volatility & Risk

FIGS has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500. Comparatively, Torrid has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500.

Summary

FIGS beats Torrid on 13 of the 14 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 Torrid

Torrid Holdings Inc. operates in women’s plus-size apparel and intimates market in North America. The company designs, develops, and merchandises its products under the Torrid, Torrid Curve, CURV, and Lovesick brand names. It is involved in the sale of tops, bottoms, dresses, denims, activewear, intimates, sleep wear, swim wear, and outerwear products; and non-apparel products comprising accessories, footwear, and beauty products. The company sells its products directly to consumers through its e-commerce platform and its physical stores. Torrid Holdings Inc. was incorporated in 2019 and is headquartered in City Of Industry, California.