Critical Comparison: Allbirds (NASDAQ:BIRD) vs. a.k.a. Brands (NYSE:AKA)

a.k.a. Brands (NYSE:AKA) and Allbirds (NASDAQ:BIRD) are both small-cap retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, dividends, valuation and analyst recommendations.

Analyst Recommendations

This is a summary of recent recommendations for a.k.a. Brands and Allbirds, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
a.k.a. Brands	1	2	1	0	2.00
Allbirds	1	2	0	0	1.67

a.k.a. Brands currently has a consensus price target of $19.00, indicating a potential upside of 99.37%. Allbirds has a consensus price target of $11.00, indicating a potential upside of 242.68%. Given Allbirds’ higher probable upside, analysts plainly believe Allbirds is more favorable than a.k.a. Brands.

Institutional & Insider Ownership

55.4% of a.k.a. Brands shares are held by institutional investors. Comparatively, 44.1% of Allbirds shares are held by institutional investors. 17.6% of a.k.a. Brands shares are held by insiders. Comparatively, 30.7% of Allbirds shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares a.k.a. Brands and Allbirds’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
a.k.a. Brands	-5.24%	-23.52%	-6.31%
Allbirds	-51.90%	-108.35%	-56.25%

Earnings & Valuation

This table compares a.k.a. Brands and Allbirds”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
a.k.a. Brands	$600.21 million	0.17	-$31.43 million	($2.93)	-3.25
Allbirds	$189.76 million	0.14	-$93.32 million	($10.37)	-0.31

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

Volatility and Risk

a.k.a. Brands has a beta of 1.65, indicating that its share price is 65% more volatile than the S&P 500. Comparatively, Allbirds has a beta of 1.99, indicating that its share price is 99% more volatile than the S&P 500.

Summary

a.k.a. Brands beats Allbirds on 10 of the 14 factors compared between the two stocks.

About a.k.a. Brands

a.k.a. Brands Holding Corp. operates a portfolio of online fashion brands in the United States, Australia, and internationally. The company offers streetwear apparel, dresses, tops, bottoms, shoes, headwear, and accessories through its online stores under the Princess Polly, Petal & Pup, Culture Kings, and mnml brands. It also operates physical stores under the Culture Kings brand. The company was founded in 2018 and is headquartered in San Francisco, California.

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.