Group 1 Automotive (NYSE:GPI – Get Free Report) and FIGS (NYSE:FIGS – Get Free Report) are both mid-cap consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, earnings, institutional ownership, analyst recommendations, risk and profitability.
Profitability
This table compares Group 1 Automotive and FIGS’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Group 1 Automotive | 1.31% | 15.66% | 4.43% |
| FIGS | 8.72% | 12.53% | 9.52% |
Volatility and Risk
Group 1 Automotive has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500. Comparatively, FIGS has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Group 1 Automotive | 2 | 3 | 5 | 0 | 2.30 |
| FIGS | 0 | 5 | 6 | 0 | 2.55 |
Group 1 Automotive currently has a consensus price target of $373.38, indicating a potential upside of 46.57%. FIGS has a consensus price target of $18.71, indicating a potential upside of 45.18%. Given Group 1 Automotive’s higher possible upside, research analysts plainly believe Group 1 Automotive is more favorable than FIGS.
Insider and Institutional Ownership
99.9% of Group 1 Automotive shares are owned by institutional investors. Comparatively, 92.2% of FIGS shares are owned by institutional investors. 2.4% of Group 1 Automotive shares are owned by insiders. Comparatively, 27.1% of FIGS shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Group 1 Automotive and FIGS”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Group 1 Automotive | $22.57 billion | 0.13 | $325.20 million | $24.01 | 10.61 |
| FIGS | $631.10 million | 3.39 | $34.25 million | $0.33 | 39.06 |
Group 1 Automotive has higher revenue and earnings than FIGS. Group 1 Automotive 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 Group 1 Automotive on 8 of the 14 factors compared between the two stocks.
About Group 1 Automotive
Group 1 Automotive, Inc., through its subsidiaries, operates in the automotive retail industry in the United States and the United Kingdom. The company sells new and used cars, light trucks, and vehicle parts, as well as service and insurance contracts; arranges related vehicle financing; and offers automotive maintenance and repair services. Group 1 Automotive, Inc. was incorporated in 1995 and is headquartered in Houston, Texas.
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.
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