Allbirds (NASDAQ:BIRD – Get Free Report) and Urban Outfitters (NASDAQ:URBN – Get Free Report) are both retail/wholesale companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, risk, profitability, analyst recommendations and earnings.
Volatility & Risk
Allbirds has a beta of 1.96, indicating that its stock price is 96% more volatile than the S&P 500. Comparatively, Urban Outfitters has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500.
Insider and Institutional Ownership
44.1% of Allbirds shares are held by institutional investors. Comparatively, 77.6% of Urban Outfitters shares are held by institutional investors. 30.7% of Allbirds shares are held by company insiders. Comparatively, 31.6% of Urban Outfitters shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Allbirds | 1 | 1 | 1 | 0 | 2.00 |
| Urban Outfitters | 1 | 8 | 8 | 1 | 2.50 |
Allbirds presently has a consensus price target of $11.00, suggesting a potential upside of 148.31%. Urban Outfitters has a consensus price target of $86.50, suggesting a potential upside of 5.85%. Given Allbirds’ higher possible upside, research analysts plainly believe Allbirds is more favorable than Urban Outfitters.
Profitability
This table compares Allbirds and Urban Outfitters’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Allbirds | -51.90% | -108.35% | -56.25% |
| Urban Outfitters | 8.15% | 18.33% | 10.04% |
Earnings and Valuation
This table compares Allbirds and Urban Outfitters”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Allbirds | $189.76 million | 0.19 | -$93.32 million | ($10.37) | -0.43 |
| Urban Outfitters | $5.55 billion | 1.32 | $402.46 million | $5.30 | 15.42 |
Urban Outfitters has higher revenue and earnings than Allbirds. Allbirds is trading at a lower price-to-earnings ratio than Urban Outfitters, indicating that it is currently the more affordable of the two stocks.
Summary
Urban Outfitters beats Allbirds on 13 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 Urban Outfitters
Urban Outfitters, Inc. engages in the retail and wholesale of general consumer products. The company operates through three segments: Retail, Wholesale, and Nuuly. It operates Urban Outfitters stores, which offer women's and men's fashion apparel, activewear, intimates, footwear, accessories, home goods, electronics, and beauty products for young adults aged 18 to 28; and Anthropologie stores that provide women's apparel, accessories, intimates, shoes, and home furnishings, as well as gifts, decorative items, and beauty and wellness products for women aged 28 to 45. The company also operates Terrain stores that provide lifestyle home products, garden and outdoor living products, antiques, live plants, flowers, wellness products, and accessories. In addition, it operates Free People retail stores, which offer casual women's apparel, intimates, activewear, shoes, accessories, home products, gifts, and beauty and wellness products for young women aged 25 to 30; and restaurants, as well as women's apparel subscription rental service under the Nuuly brand. Further, the company is involved in the wholesale of young women's contemporary casual apparel, intimates, activewear, and shoes under the Free People brand; and apparel collections under the Urban Outfitters brand. The company serves its customers directly through retail stores, websites, mobile applications, catalogs and customer contact centers, franchisee-owned stores, and department and specialty stores, as well as social media and third-party digital platforms. Urban Outfitters, Inc. was founded in 1970 and is based in Philadelphia, Pennsylvania.
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