Children’s Place (NASDAQ:PLCE) vs. FIGS (NYSE:FIGS) Financial Contrast

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

Earnings & Valuation

This table compares Children’s Place and FIGS”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Children’s Place	$1.21 billion	0.07	-$88.26 million	($4.01)	-0.90
FIGS	$631.10 million	3.16	$34.25 million	$0.22	54.33

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

Institutional and Insider Ownership

92.2% of FIGS shares are held by institutional investors. 0.9% of Children’s Place shares are held by insiders. Comparatively, 27.1% of FIGS shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings for Children’s Place and FIGS, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Children’s Place	1	1	0	0	1.50
FIGS	0	6	4	1	2.55

Children’s Place presently has a consensus target price of $4.00, indicating a potential upside of 10.50%. FIGS has a consensus target price of $15.93, indicating a potential upside of 33.26%. Given FIGS’s stronger consensus rating and higher possible upside, analysts clearly believe FIGS is more favorable than Children’s Place.

Volatility & Risk

Children’s Place has a beta of 1.9, indicating that its stock price is 90% more volatile than the S&P 500. Comparatively, FIGS has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Children’s Place	-7.30%	N/A	-10.79%
FIGS	6.10%	9.69%	7.37%

Summary

FIGS beats Children’s Place on 13 of the 15 factors compared between the two stocks.

About Children’s Place

The Children’s Place, Inc. engages in the provision of apparel, footwear, accessories, and other items for children. The firm also designs contracts to manufacture and sell fashionable and value-priced merchandise under the brand names of The Children’s Place, Baby Place, and Gymboree. It operates through The Children’s Place U.S. and The Children’s Place International segments. The Children’s Place U.S. segment refers to the company’s U.S. and Puerto Rico-based stores and revenue from its U.S. based wholesale business. The Children’s Place International segment is involved in the Canadian-based stores, revenue from the company’s Canadian-based wholesale business, as well as revenue from international franchisees. The company was founded by David Pulver and Clinton A. Clark in 1969 and is headquartered in Secaucus, NJ.

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.