Allbirds (NASDAQ:BIRD) versus Capri (NYSE:CPRI) Critical Analysis

Allbirds (NASDAQ:BIRD) and Capri (NYSE:CPRI) are both retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, risk, institutional ownership and earnings.

Insider and Institutional Ownership

44.1% of Allbirds shares are held by institutional investors. Comparatively, 84.3% of Capri shares are held by institutional investors. 30.7% of Allbirds shares are held by company insiders. Comparatively, 2.3% of Capri shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Allbirds and Capri, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allbirds	1	2	0	0	1.67
Capri	1	7	6	1	2.47

Allbirds presently has a consensus price target of $8.00, indicating a potential downside of 5.10%. Capri has a consensus price target of $25.92, indicating a potential upside of 24.67%. Given Capri’s stronger consensus rating and higher probable upside, analysts clearly believe Capri is more favorable than Allbirds.

Risk & Volatility

Allbirds has a beta of 1.85, suggesting that its stock price is 85% more volatile than the S&P 500. Comparatively, Capri has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Allbirds	-50.69%	-127.72%	-60.21%
Capri	-13.57%	-430.23%	-8.70%

Earnings and Valuation

This table compares Allbirds and Capri”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allbirds	$152.47 million	0.48	-$77.28 million	($9.48)	-0.89
Capri	$4.44 billion	0.56	-$1.18 billion	($4.26)	-4.88

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

Summary

Capri 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 Capri

Capri Holdings Limited designs, markets, distributes, and retails branded women's and men's apparel, footwear, and accessories in the United States, Canada, Latin America, Europe, the Middle East, Africa, and Asia. It operates through three segments: Versace, Jimmy Choo, and Michael Kors. The company offers ready-to-wear, accessories, footwear, handbags, scarves and belts, small leather goods, eyewear, watches, jewelry, fragrances, and home furnishings through a distribution network, including boutiques, department, and specialty stores, as well as through e-commerce sites. It also engages in licensing agreements to the manufacture and sale of watches, jewelry, eyewear, and fragrances. The company was formerly known as Michael Kors Holdings Limited and changed its name to Capri Holdings Limited in December 2018. Capri Holdings Limited was founded in 1981 and is headquartered in London, the United Kingdom.