Head-To-Head Analysis: Allbirds (NASDAQ:BIRD) vs. Children’s Place (NASDAQ:PLCE)

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

Volatility & Risk

Allbirds has a beta of 2.56, suggesting that its share price is 156% more volatile than the S&P 500. Comparatively, Children’s Place has a beta of 1.9, suggesting that its share price is 90% more volatile than the S&P 500.

Profitability

This table compares Allbirds and Children’s Place’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%
Children’s Place	-9.09%	N/A	-12.53%

Valuation and Earnings

This table compares Allbirds and Children’s Place”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allbirds	$152.47 million	0.34	-$77.28 million	($9.12)	-0.65
Children’s Place	$1.21 billion	0.06	-$88.26 million	($4.84)	-0.71

Allbirds has higher earnings, but lower revenue than Children’s Place. Children’s Place is trading at a lower price-to-earnings ratio than Allbirds, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

44.1% of Allbirds shares are held by institutional investors. 30.7% of Allbirds shares are held by insiders. Comparatively, 0.9% of Children’s Place shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Allbirds and Children’s Place, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allbirds	1	2	0	0	1.67
Children’s Place	1	1	0	0	1.50

Allbirds currently has a consensus target price of $8.00, indicating a potential upside of 34.00%. Children’s Place has a consensus target price of $4.00, indicating a potential upside of 16.28%. Given Allbirds’ stronger consensus rating and higher probable upside, analysts plainly believe Allbirds is more favorable than Children’s Place.

Summary

Allbirds beats Children’s Place on 8 of the 13 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 Children’s Place

The Children’s Place, Inc. engages in the provision of apparel, footwear, accessories, and other items for children. The firm also designs contracts to manufacture and sell fashionable and value-priced merchandise under the brand names of The Children’s Place, Baby Place, and Gymboree. It operates through The Children’s Place U.S. and The Children’s Place International segments. The Children’s Place U.S. segment refers to the company’s U.S. and Puerto Rico-based stores and revenue from its U.S. based wholesale business. The Children’s Place International segment is involved in the Canadian-based stores, revenue from the company’s Canadian-based wholesale business, as well as revenue from international franchisees. The company was founded by David Pulver and Clinton A. Clark in 1969 and is headquartered in Secaucus, NJ.