Head-To-Head Comparison: Tandy Leather Factory (NASDAQ:TLF) vs. Allbirds (NASDAQ:BIRD)

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

Institutional & Insider Ownership

56.4% of Tandy Leather Factory shares are held by institutional investors. Comparatively, 44.1% of Allbirds shares are held by institutional investors. 34.1% of Tandy Leather Factory shares are held by insiders. Comparatively, 30.7% of Allbirds shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Tandy Leather Factory and Allbirds”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tandy Leather Factory	$76.32 million	0.25	$9.10 million	($0.24)	-9.88
Allbirds	$152.47 million	0.22	-$77.28 million	($9.12)	-0.42

Tandy Leather Factory has higher earnings, but lower revenue than Allbirds. Tandy Leather Factory 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 Tandy Leather Factory and Allbirds’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tandy Leather Factory	-2.94%	-4.31%	-2.74%
Allbirds	-53.36%	-173.54%	-67.54%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Tandy Leather Factory and Allbirds, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tandy Leather Factory	1	0	0	0	1.00
Allbirds	1	2	0	0	1.67

Allbirds has a consensus price target of $8.00, indicating a potential upside of 108.88%. Given Allbirds’ stronger consensus rating and higher possible upside, analysts clearly believe Allbirds is more favorable than Tandy Leather Factory.

Volatility and Risk

Tandy Leather Factory has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500. Comparatively, Allbirds has a beta of 2.72, suggesting that its stock price is 172% more volatile than the S&P 500.

Summary

Tandy Leather Factory beats Allbirds on 8 of the 13 factors compared between the two stocks.

About Tandy Leather Factory

Tandy Leather Factory, Inc. engages in the distribution of leather and related products. It offers leather, leatherworking tools, buckles and adornments for belts, leather dyes and finishes, saddle and tack hardware, and do-it-yourself kits. It operates through North America and International geographical segments. The North America geographical segment consists of 115 stores, which offer a broad selection of products combined with leathercraft expertise in a one-stop shop. The International geographical segment comprises of similar to North America segment but generally located in light industrial areas. The company was founded by J. Wray Thompson, Sr. and Ronald C. Morgan in 1980 and is headquartered in Fort Worth, TX.

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.