Children’s Place (NASDAQ:PLCE – Get Free Report) and FIGS (NYSE:FIGS – Get Free Report) are both small-cap retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, institutional ownership, risk and earnings.
Risk & Volatility
Children’s Place has a beta of 1.9, meaning that its stock price is 90% more volatile than the S&P 500. Comparatively, FIGS has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500.
Institutional & Insider Ownership
92.2% of FIGS shares are owned by institutional investors. 0.9% of Children’s Place shares are owned by insiders. Comparatively, 27.1% of FIGS shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Children’s Place | $1.21 billion | 0.06 | -$88.26 million | ($4.01) | -0.88 |
| FIGS | $631.10 million | 3.14 | $34.25 million | $0.22 | 53.89 |
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.
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% |
Analyst Ratings
This is a summary of current ratings and recommmendations for Children’s Place and FIGS, as reported by MarketBeat.
| 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, suggesting a potential upside of 13.64%. FIGS has a consensus target price of $15.93, suggesting a potential upside of 34.36%. Given FIGS’s stronger consensus rating and higher probable upside, analysts plainly believe FIGS is more favorable than Children’s Place.
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.
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