Head-To-Head Review: Allbirds (NASDAQ:BIRD) and Lulu’s Fashion Lounge (NASDAQ:LVLU)

Allbirds (NASDAQ:BIRD) and Lulu’s Fashion Lounge (NASDAQ:LVLU) are both small-cap retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, dividends, valuation and risk.

Insider & Institutional Ownership

44.1% of Allbirds shares are owned by institutional investors. Comparatively, 73.8% of Lulu’s Fashion Lounge shares are owned by institutional investors. 30.7% of Allbirds shares are owned by company insiders. Comparatively, 7.8% of Lulu’s Fashion Lounge shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Allbirds and Lulu’s Fashion Lounge, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allbirds	1	2	0	0	1.67
Lulu’s Fashion Lounge	1	0	0	0	1.00

Allbirds currently has a consensus target price of $8.00, suggesting a potential upside of 46.17%. Given Allbirds’ stronger consensus rating and higher possible upside, research analysts clearly believe Allbirds is more favorable than Lulu’s Fashion Lounge.

Risk and Volatility

Allbirds has a beta of 2.56, indicating that its stock price is 156% more volatile than the S&P 500. Comparatively, Lulu’s Fashion Lounge has a beta of 0.37, indicating that its stock price is 63% less volatile than the S&P 500.

Earnings & Valuation

This table compares Allbirds and Lulu’s Fashion Lounge”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allbirds	$152.47 million	0.32	-$77.28 million	($9.12)	-0.60
Lulu’s Fashion Lounge	$282.28 million	0.08	-$13.71 million	($3.50)	-2.12

Lulu’s Fashion Lounge has higher revenue and earnings than Allbirds. Lulu’s Fashion Lounge is trading at a lower price-to-earnings ratio than Allbirds, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Allbirds and Lulu’s Fashion Lounge’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Allbirds	-53.36%	-173.54%	-67.54%
Lulu’s Fashion Lounge	-3.56%	-423.50%	-9.95%

Summary

Allbirds beats Lulu’s Fashion Lounge on 7 of the 13 factors compared between the two stocks.

About Allbirds

Allbirds, Inc. manufactures and sells footwear and apparel products for men and women in the United States and internationally. The company offers a range of lifestyle and performance shoes; and apparel, including classic tees and sweats, socks, and underwear. It sells its products through its retail stores, as well as online. The company was formerly known as Bozz, Inc. and changed its name to Allbirds, Inc. in December 2015. Allbirds, Inc. was incorporated in 2015 and is headquartered in San Francisco, California.

About Lulu’s Fashion Lounge

Lulu’s Fashion Lounge Holdings, Inc. engages in providing an online website for clothing. It offers retailing of women’s clothing, shoes, and accessories. The company was founded in 1996 and is headquartered in Chico, CA.