FIGS vs. Gildan Activewear: Which Consumer Stock Is a Better Buy in 2026?

Choosing between growth and stability often defines a portfolio strategy. In 2026, comparing the specialist scrubs brand FIGS (NYSE:FIGS) against the vertically integrated giant Gildan Activewear (NYSE:GIL) highlights two very different ways to win.

FIGS focuses on a specific niche of healthcare professionals, aiming to disrupt a traditionally stale, uniform market by building brand loyalty. In contrast, Gildan Activewear produces large volumes of basics, such as T-shirts and fleece, for wholesalers and retail brands. Both companies are prominent players among apparel stocks, yet they offer distinct risk profiles.

The case for FIGS

FIGS operates as a specialist in the apparel stocks category, selling technically advanced scrubs directly to healthcare professionals. The company uses a direct-to-consumer model to build brand loyalty through digital marketing and its TEAMS platform for healthcare institutions. By March 2026, the company served more than 3 million active customers across the United States and several international markets.

In FY 2025, revenue reached nearly $631.1 million, a 13.6% increase from the previous year. Net income for the period was approximately $34.2 million, a significant jump from the $2.7 million reported in fiscal 2024. This growth shows the brand is successfully expanding its reach while improving its net margin, which measures how much profit a company keeps from its total sales.

As of its December 2025 balance sheet, the debt-to-equity ratio was nearly 0.1x. This metric, which compares total debt to shareholder equity, indicates the company uses very little borrowed money for its operations. The current ratio, which measures the ability to pay short-term debts with short-term assets, was roughly 4.9x. Free cash flow reached approximately $53.0 million for the year. Note that stock-based compensation accounted for roughly 43.9% of operating cash flow, thereby inflating reported cash generation, since SBC is a non-cash expense added back in the cash flow statement.

The case for Gildan Activewear

Gildan Activewear leverages a massive, vertically integrated manufacturing model to produce everyday basic apparel. The company employs roughly 80,000 people worldwide and controls its production process from yarn to finished garments. This scale enables it to serve a wide array of customers, including wholesale distributors, screen printers, and global lifestyle brands across North America and Europe.

During FY 2025, the company reported revenue of approximately $3.7 billion, a 12.5% increase from the prior fiscal year. Net income for the fiscal year was approximately $405.9 million, resulting in a healthy net margin of roughly 11.0%. While total revenue is much higher than its peers’, the company focuses on high-volume, lower-price point items to drive consistent profitability.

According to its December 2025 balance sheet, the debt-to-equity ratio was approximately 1.4x. This means the company holds roughly $1.40 in total debt for every dollar of shareholder equity. The current ratio was approximately 2.1x, suggesting a solid ability to cover short-term financial obligations. Free cash flow, which is the cash remaining after a company pays for its operating costs and capital expenditures, was nearly $477.2 million for the year.

Risk profile comparison

FIGS faces significant operational risks because it relies exclusively on a single fulfillment center in Arizona for its product distribution. Any site-specific disruption there could halt its ability to deliver products to customers. The company also deals with supply chain concentration in Vietnam and Jordan, making it vulnerable to geopolitical conflicts or shipping delays. Furthermore, it faces intense competition from established wholesalers like Barco Uniforms and Landau Uniforms, which could erode its market share.

Gildan Activewear is exposed to the volatility of raw material prices, particularly cotton, which can impact its net margin. As a large-scale manufacturer, the company also faces risks related to international trade policies and potential labor cost increases in its global facilities. It competes in a crowded market against other massive apparel producers like Hanesbrands and Berkshire Hathaway (NYSE:BRKA) (NYSE:BRKB), which owns the Fruit of the Loom brand. Changes in consumer demand for basic apparel or shifts in wholesale buying patterns could also impact future revenue.

Valuation comparison

Gildan Activewear trades at a lower Forward P/E and P/S ratio than FIGS, appearing more value-oriented based on future earnings estimates.

Sector benchmark uses the SPDR XLY sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Which stock would I buy in 2026?

FIGS and Gildan are both apparel manufacturers, but they produce clothing for different purposes. FIGS focuses on premium healthcare apparel, such as scrubs. While there is no shortage of demand for these items, this focus means the company is dependent upon one brand and niche. It also relies on just one fulfillment center, and its merchandise is made mainly in Vietnam and Jordan. This type of concentration makes it vulnerable to disruptions in the supply chain.

Also, although it has delivered impressive growth and is expanding its customer base in both the U.S. and internationally, it trades at a premium valuation. That means investors who buy in now risk disappointment if the brand fails to perform as expected.

Gildan produces activewear, socks, and accessories, and is best known for its blank T-shirts and sweats, which are frequently used for screen printing. It has multiple brands under its umbrella and controls most of its own supply chain.

Gildan also faces significant competition, but it is a well-known brand. It currently trades at a lower valuation relative to its earnings potential. Gildan also pays a dividend to its shareholders, while FIGS does not. Rising labor and commodity costs could affect its margins, but the company has taken steps to manage these issues.

Gildan doesn’t have the growth potential that FIGS might have if all goes according to plan. But it seems to offer a steadier long-term path, so this is the stock I would choose for my own portfolio.

Pamela Kock has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.