Reviewing Destination XL Group (NASDAQ:DXLG) and FIGS (NYSE:FIGS)

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

Analyst Ratings

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

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

Destination XL Group currently has a consensus price target of $1.50, indicating a potential upside of 113.98%. FIGS has a consensus price target of $15.93, indicating a potential upside of 27.60%. Given Destination XL Group’s higher probable upside, research analysts plainly believe Destination XL Group is more favorable than FIGS.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Destination XL Group	$435.02 million	0.09	-$35.91 million	($0.66)	-1.06
FIGS	$631.10 million	3.30	$34.25 million	$0.22	56.74

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.

Institutional & Insider Ownership

73.5% of Destination XL Group shares are owned by institutional investors. Comparatively, 92.2% of FIGS shares are owned by institutional investors. 14.3% of Destination XL Group shares are owned by insiders. Comparatively, 29.4% of FIGS shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

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

Risk & Volatility

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

Summary

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

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.

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.