Comparing Allbirds (NASDAQ:BIRD) and Sportsman’s Warehouse (NASDAQ:SPWH)

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

Insider & Institutional Ownership

44.1% of Allbirds shares are owned by institutional investors. Comparatively, 83.0% of Sportsman’s Warehouse shares are owned by institutional investors. 30.7% of Allbirds shares are owned by company insiders. Comparatively, 3.8% of Sportsman’s Warehouse shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Allbirds has a beta of 2.72, suggesting that its stock price is 172% more volatile than the S&P 500. Comparatively, Sportsman’s Warehouse has a beta of 0.43, suggesting that its stock price is 57% less volatile than the S&P 500.

Earnings & Valuation

This table compares Allbirds and Sportsman’s Warehouse”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allbirds	$142.67 million	0.25	-$77.28 million	($9.12)	-0.45
Sportsman’s Warehouse	$1.21 billion	0.04	-$50.06 million	($1.30)	-1.02

Sportsman’s Warehouse has higher revenue and earnings than Allbirds. Sportsman’s Warehouse 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 Sportsman’s Warehouse’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%
Sportsman’s Warehouse	-4.14%	-10.30%	-2.38%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Allbirds and Sportsman’s Warehouse, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allbirds	1	2	0	0	1.67
Sportsman’s Warehouse	1	1	3	0	2.40

Allbirds presently has a consensus target price of $8.00, suggesting a potential upside of 94.17%. Sportsman’s Warehouse has a consensus target price of $2.94, suggesting a potential upside of 122.54%. Given Sportsman’s Warehouse’s stronger consensus rating and higher probable upside, analysts plainly believe Sportsman’s Warehouse is more favorable than Allbirds.

Summary

Sportsman’s Warehouse 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 Sportsman’s Warehouse

Sportsman’s Warehouse Holdings, Inc. engages in the retail of sporting and athletic goods. Its products include hunting and shooting, archery, fishing, camping, boating accessories, optics and electronics, knives and tools, and footwear. The company was founded in 1986 and is headquartered in West Jordan, UT.