Duluth (NASDAQ:DLTH) vs. FIGS (NYSE:FIGS) Critical Survey

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

Risk and Volatility

Duluth has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500. Comparatively, FIGS has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Duluth and FIGS, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Duluth	1	1	1	1	2.50
FIGS	0	5	6	0	2.55

Duluth currently has a consensus price target of $5.00, indicating a potential upside of 35.87%. FIGS has a consensus price target of $18.71, indicating a potential upside of 22.48%. Given Duluth’s higher possible upside, equities analysts plainly believe Duluth is more favorable than FIGS.

Earnings & Valuation

This table compares Duluth and FIGS”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Duluth	$565.18 million	0.25	-$16.39 million	($0.32)	-11.50
FIGS	$631.10 million	4.02	$34.25 million	$0.33	46.30

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Duluth	-2.00%	-3.69%	-1.42%
FIGS	8.72%	12.53%	9.52%

Insider and Institutional Ownership

24.4% of Duluth shares are held by institutional investors. Comparatively, 92.2% of FIGS shares are held by institutional investors. 40.4% of Duluth shares are held by company insiders. Comparatively, 27.1% of FIGS shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

FIGS beats Duluth on 11 of the 15 factors compared between the two stocks.

About Duluth

Duluth Holdings Inc. sells casual wear, workwear, and accessories for men and women under the Duluth Trading brand in the United States. It provides shirts, pants, underwear, tanks, outerwear, footwear, accessories, and hard goods. The company offers its products under various trademarks, trade names, and service marks, including Alaskan Hardgear, Armachillo, Ballroom, Bucket Master, Cab Commander, Crouch Gusset, Dry on the Fly, Duluth Trading Co, Duluthflex, Fire Hose, Longtail T, No-Yank, No Polo Shirt, Wild Boar Mocs, and Buck Naked. Duluth Holdings Inc. markets its products through its Website, catalogs, and retail stores. As of May 17, 2018, it operated 36 retail stores. The company was formerly known as GEMPLER'S, Inc. Duluth Holdings Inc. was founded in 1989 and is headquartered in Belleville, Wisconsin.

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.