Head to Head Survey: PetMed Express (NASDAQ:PETS) versus FIGS (NYSE:FIGS)

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

Analyst Ratings

This is a summary of recent ratings and target prices for PetMed Express and FIGS, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PetMed Express	3	0	0	0	1.00
FIGS	0	4	8	0	2.67

PetMed Express presently has a consensus target price of $1.40, suggesting a potential upside of 48.90%. FIGS has a consensus target price of $21.62, suggesting a potential downside of 2.00%. Given PetMed Express’ higher possible upside, research analysts clearly believe PetMed Express is more favorable than FIGS.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PetMed Express	$179.02 million	0.12	-$57.29 million	($1.28)	-0.73
FIGS	$631.10 million	5.80	$34.25 million	$0.38	58.07

FIGS has higher revenue and earnings than PetMed Express. PetMed Express is trading at a lower price-to-earnings ratio than FIGS, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

PetMed Express has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500. Comparatively, FIGS has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PetMed Express	-16.97%	-107.14%	-37.21%
FIGS	9.67%	14.65%	11.02%

Insider and Institutional Ownership

73.3% of PetMed Express shares are held by institutional investors. Comparatively, 92.2% of FIGS shares are held by institutional investors. 1.3% of PetMed Express shares are held by company insiders. Comparatively, 27.1% 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.

Summary

FIGS beats PetMed Express on 12 of the 13 factors compared between the two stocks.

About PetMed Express

PetMed Express, Inc., doing business as PetMeds, is an online retailer of prescription and nonprescription medications and health products for dogs, cats and other household pets. The company offers products used to treat or prevent conditions such as allergies, infections, parasites and chronic illnesses, including prescription medicines, flea and tick treatments, heartworm preventatives, supplements and other animal-health products. In addition to medications, PetMeds sells pet food, treats, vitamins, wellness products and selected supplies.

About FIGS

FIGS, Inc. designs and sells apparel and accessories for healthcare professionals. Its products include scrubs, underscrubs, lab coats, outerwear, footwear, compression socks and other work-related accessories, with an emphasis on functional design and performance fabrics. The company primarily sells through its e-commerce platform, serving healthcare workers in the United States and internationally. Its offerings are aimed at professionals across a range of medical roles and care settings. FIGS was founded in 2013 by Heather Hasson and Trina Spear.