Head to Head Analysis: FIGS (NYSE:FIGS) & Capri (NYSE:CPRI)

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

Insider & Institutional Ownership

84.3% of Capri shares are held by institutional investors. Comparatively, 92.2% of FIGS shares are held by institutional investors. 2.3% of Capri shares are held by company insiders. Comparatively, 29.4% of FIGS shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Capri	-13.57%	-430.23%	-8.70%
FIGS	5.43%	8.41%	6.33%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capri	$4.44 billion	0.48	-$1.18 billion	($4.26)	-4.22
FIGS	$631.10 million	3.87	$34.25 million	$0.19	77.27

FIGS has lower revenue, but higher earnings than Capri. Capri 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

Capri has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500. Comparatively, FIGS has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Capri and FIGS, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capri	1	7	6	1	2.47
FIGS	0	5	4	2	2.73

Capri currently has a consensus price target of $26.46, suggesting a potential upside of 47.10%. FIGS has a consensus price target of $13.93, suggesting a potential downside of 5.13%. Given Capri’s higher probable upside, equities analysts plainly believe Capri is more favorable than FIGS.

Summary

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

About Capri

Capri Holdings Limited designs, markets, distributes, and retails branded women's and men's apparel, footwear, and accessories in the United States, Canada, Latin America, Europe, the Middle East, Africa, and Asia. It operates through three segments: Versace, Jimmy Choo, and Michael Kors. The company offers ready-to-wear, accessories, footwear, handbags, scarves and belts, small leather goods, eyewear, watches, jewelry, fragrances, and home furnishings through a distribution network, including boutiques, department, and specialty stores, as well as through e-commerce sites. It also engages in licensing agreements to the manufacture and sale of watches, jewelry, eyewear, and fragrances. The company was formerly known as Michael Kors Holdings Limited and changed its name to Capri Holdings Limited in December 2018. Capri Holdings Limited was founded in 1981 and is headquartered in London, the United Kingdom.

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.