Analyzing Allbirds (NASDAQ:BIRD) & Boot Barn (NYSE:BOOT)

Allbirds (NASDAQ:BIRD) and Boot Barn (NYSE:BOOT) are both retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, valuation, profitability, earnings and risk.

Earnings & Valuation

This table compares Allbirds and Boot Barn”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allbirds	$152.47 million	0.14	-$93.32 million	($10.37)	-0.26
Boot Barn	$2.17 billion	1.90	$180.94 million	$7.12	19.00

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

Risk and Volatility

Allbirds has a beta of 1.85, suggesting that its stock price is 85% more volatile than the S&P 500. Comparatively, Boot Barn has a beta of 1.66, suggesting that its stock price is 66% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Allbirds and Boot Barn, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allbirds	1	2	0	0	1.67
Boot Barn	0	3	12	0	2.80

Allbirds currently has a consensus target price of $11.00, suggesting a potential upside of 313.53%. Boot Barn has a consensus target price of $217.00, suggesting a potential upside of 60.38%. Given Allbirds’ higher probable upside, analysts clearly believe Allbirds is more favorable than Boot Barn.

Profitability

This table compares Allbirds and Boot Barn’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Allbirds	-51.90%	-108.35%	-56.25%
Boot Barn	10.10%	18.28%	9.99%

Institutional and Insider Ownership

44.1% of Allbirds shares are held by institutional investors. 30.7% of Allbirds shares are held by company insiders. Comparatively, 0.7% of Boot Barn shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Boot Barn beats Allbirds on 10 of the 14 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 Boot Barn

Boot Barn Holdings, Inc., a lifestyle retail chain, operates specialty retail stores in the United States. The company's specialty retail stores offer western and work-related footwear, apparel, and accessories for men, women, and kids. It offers boots, shirts, jackets, hats, belts and belt buckles, handbags, western-style jewelry, rugged footwear, outerwear, overalls, denim, and flame-resistant and high-visibility clothing. The company also provides gifts and home merchandise. The company also sells its products through e-commerce websites, including bootbarn.com; sheplers.com; and countryoutfitter.com. The company was formerly known as WW Top Investment Corporation and changed its name to Boot Barn Holdings, Inc. in June 2014. Boot Barn Holdings, Inc. was founded in 1978 and is based in Irvine, California.