GAP (NYSE:GAP – Get Free Report) and Allbirds (NASDAQ:BIRD – Get Free Report) are both retail/wholesale companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, institutional ownership and earnings.
Insider & Institutional Ownership
58.8% of GAP shares are held by institutional investors. Comparatively, 44.1% of Allbirds shares are held by institutional investors. 31.0% of GAP shares are held by company insiders. Comparatively, 30.7% of Allbirds shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of current recommendations and price targets for GAP and Allbirds, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GAP | 1 | 10 | 7 | 0 | 2.33 |
| Allbirds | 1 | 1 | 1 | 0 | 2.00 |
Earnings and Valuation
This table compares GAP and Allbirds”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| GAP | $15.17 billion | 0.54 | $844.00 million | $2.34 | 9.49 |
| Allbirds | $189.76 million | 0.29 | -$93.32 million | ($10.56) | -0.65 |
GAP has higher revenue and earnings than Allbirds. Allbirds is trading at a lower price-to-earnings ratio than GAP, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares GAP and Allbirds’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| GAP | 5.86% | 27.04% | 7.49% |
| Allbirds | -49.36% | -87.92% | -48.49% |
Risk and Volatility
GAP has a beta of 2.1, meaning that its stock price is 110% more volatile than the S&P 500. Comparatively, Allbirds has a beta of 1.84, meaning that its stock price is 84% more volatile than the S&P 500.
Summary
GAP beats Allbirds on 13 of the 14 factors compared between the two stocks.
About GAP
Gap, Inc. operates as a global apparel retail company, which offers clothing, apparel, accessories, and personal care products for men, women, and children. The firm operates through the following segments: Gap Global, Old Navy Global, Banana Republic Global, Athleta, and Other. The Gap Global segment includes apparel and accessories for men and women under the Gap brand, along with the GapKids, BabyGap, GapMaternity, GapBody, and GapFit collections. The Old Navy Global segment offers clothing and accessories for adults and children. The Banana Republic Global segment provides clothing, eyewear, jewelry, shoes, handbags, and fragrances. The Athleta segment offers fitness apparel for women. The company founded by Donald G. Fisher and Doris F. Fisher in July 1969 and is headquartered in San Francisco, CA.
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.
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