Head to Head Analysis: Torrid (NYSE:CURV) vs. FIGS (NYSE:FIGS)

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

Risk & Volatility

FIGS has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, Torrid has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for FIGS and Torrid, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FIGS	0	5	6	0	2.55
Torrid	2	5	1	0	1.88

FIGS currently has a consensus price target of $18.71, suggesting a potential upside of 18.93%. Torrid has a consensus price target of $1.81, suggesting a potential downside of 27.90%. Given FIGS’s stronger consensus rating and higher probable upside, analysts clearly believe FIGS is more favorable than Torrid.

Institutional & Insider Ownership

92.2% of FIGS shares are held by institutional investors. Comparatively, 81.8% of Torrid shares are held by institutional investors. 27.1% of FIGS shares are held by company insiders. Comparatively, 6.5% of Torrid shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FIGS	$631.10 million	4.14	$34.25 million	$0.33	47.68
Torrid	$1.00 billion	0.25	-$7.03 million	($0.09)	-27.93

FIGS has higher earnings, but lower revenue than Torrid. Torrid 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 FIGS and Torrid’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FIGS	8.72%	12.53%	9.52%
Torrid	-0.94%	N/A	-4.49%

Summary

FIGS beats Torrid on 13 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 Torrid

Torrid Holdings Inc. operates in women’s plus-size apparel and intimates market in North America. The company designs, develops, and merchandises its products under the Torrid, Torrid Curve, CURV, and Lovesick brand names. It is involved in the sale of tops, bottoms, dresses, denims, activewear, intimates, sleep wear, swim wear, and outerwear products; and non-apparel products comprising accessories, footwear, and beauty products. The company sells its products directly to consumers through its e-commerce platform and its physical stores. Torrid Holdings Inc. was incorporated in 2019 and is headquartered in City Of Industry, California.