Critical Contrast: Allbirds (NASDAQ:BIRD) and Bit Digital (NASDAQ:BTBT)

Allbirds (NASDAQ:BIRD) and Bit Digital (NASDAQ:BTBT) are both small-cap technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Institutional and Insider Ownership

44.1% of Allbirds shares are owned by institutional investors. Comparatively, 47.7% of Bit Digital shares are owned by institutional investors. 18.8% of Allbirds shares are owned by company insiders. Comparatively, 2.0% of Bit Digital shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Allbirds	-72.82%	-231.86%	-81.53%
Bit Digital	-237.19%	-10.66%	-6.81%

Earnings and Valuation

This table compares Allbirds and Bit Digital”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allbirds	$152.47 million	0.13	-$77.28 million	($8.99)	-0.25
Bit Digital	$113.56 million	2.68	-$80.32 million	($1.06)	-0.80

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for Allbirds and Bit Digital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allbirds	1	1	0	0	1.50
Bit Digital	1	1	4	1	2.71

Bit Digital has a consensus price target of $4.38, suggesting a potential upside of 417.87%. Given Bit Digital’s stronger consensus rating and higher probable upside, analysts plainly believe Bit Digital is more favorable than Allbirds.

Volatility & Risk

Allbirds has a beta of 2.6, meaning that its stock price is 160% more volatile than the S&P 500. Comparatively, Bit Digital has a beta of 3.84, meaning that its stock price is 284% more volatile than the S&P 500.

Summary

Bit Digital beats Allbirds on 10 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 Bit Digital

Bit Digital, Inc., together with its subsidiaries, engages in the bitcoin mining business. It is also involved in the treasury management activities; and digital asset staking and digital asset mining businesses, as well as ethereum staking activities. In addition, it provides specialized cloud-infrastructure services for artificial intelligence applications. The company was formerly known as Golden Bull Limited and changed its name to Bit Digital, Inc. in September 2020. Bit Digital, Inc. was founded in 2015 and is headquartered in New York, New York.