Head-To-Head Comparison: Allbirds (NASDAQ:BIRD) vs. ON (NYSE:ONON)

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

Insider and Institutional Ownership

44.1% of Allbirds shares are owned by institutional investors. Comparatively, 36.4% of ON shares are owned by institutional investors. 30.7% of Allbirds shares are owned by company insiders. Comparatively, 68.6% of ON shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Allbirds has a beta of 1.85, meaning that its share price is 85% more volatile than the S&P 500. Comparatively, ON has a beta of 2.23, meaning that its share price is 123% more volatile than the S&P 500.

Earnings & Valuation

This table compares Allbirds and ON”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	0.62	-$77.28 million	($9.48)	-1.14
ON	$3.64 billion	6.48	$245.87 million	$0.72	51.30

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Allbirds and ON, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allbirds	1	2	0	0	1.67
ON	2	3	18	1	2.75

Allbirds presently has a consensus price target of $8.00, indicating a potential downside of 25.93%. ON has a consensus price target of $58.62, indicating a potential upside of 58.71%. Given ON’s stronger consensus rating and higher possible upside, analysts plainly believe ON is more favorable than Allbirds.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Allbirds	-50.69%	-127.72%	-60.21%
ON	6.59%	13.25%	7.56%

Summary

ON beats Allbirds on 14 of the 15 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 ON

On Holding AG engages in the development and distribution of sports products such as footwear, apparel, and accessories for high-performance running, outdoor, all-day activities, and tennis. It sells its products worldwide through independent retailers and global distributors, its own online presence, and its own stores. The company was founded by David Allemann, Olivier Bernhard, and Caspar Coppetti in January 2010 and is headquartered in Zurich, Switzerland.