Genesco (NYSE:GCO) versus FIGS (NYSE:FIGS) Head-To-Head Contrast

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

Analyst Ratings

This is a breakdown of recent recommendations for FIGS and Genesco, as reported by MarketBeat.com.

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

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

Risk and Volatility

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

Profitability

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

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

Insider and Institutional Ownership

92.2% of FIGS shares are held by institutional investors. Comparatively, 94.5% of Genesco shares are held by institutional investors. 29.4% of FIGS shares are held by insiders. Comparatively, 23.1% of Genesco shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

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

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

FIGS has higher earnings, but lower revenue 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.

Summary

FIGS beats Genesco on 10 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 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.