Warby Parker (NYSE:WRBY) vs. a.k.a. Brands (NYSE:AKA) Head-To-Head Analysis

a.k.a. Brands (NYSE:AKA) and Warby Parker (NYSE:WRBY) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, profitability, risk, analyst recommendations, valuation and dividends.

Volatility and Risk

a.k.a. Brands has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500. Comparatively, Warby Parker has a beta of 1.95, indicating that its stock price is 95% more volatile than the S&P 500.

Valuation and Earnings

This table compares a.k.a. Brands and Warby Parker”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
a.k.a. Brands	$600.21 million	0.19	-$31.43 million	($2.48)	-4.10
Warby Parker	$871.91 million	3.06	$1.64 million	$0.07	352.14

Warby Parker has higher revenue and earnings than a.k.a. Brands. a.k.a. Brands is trading at a lower price-to-earnings ratio than Warby Parker, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares a.k.a. Brands and Warby Parker’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
a.k.a. Brands	-4.43%	-20.93%	-5.17%
Warby Parker	0.85%	3.36%	1.72%

Insider and Institutional Ownership

55.3% of a.k.a. Brands shares are held by institutional investors. Comparatively, 93.2% of Warby Parker shares are held by institutional investors. 18.2% of a.k.a. Brands shares are held by company insiders. Comparatively, 16.8% of Warby Parker shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets for a.k.a. Brands and Warby Parker, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
a.k.a. Brands	1	2	1	0	2.00
Warby Parker	1	3	6	1	2.64

a.k.a. Brands currently has a consensus price target of $19.00, indicating a potential upside of 86.64%. Warby Parker has a consensus price target of $30.00, indicating a potential upside of 21.70%. Given a.k.a. Brands’ higher possible upside, analysts plainly believe a.k.a. Brands is more favorable than Warby Parker.

Summary

Warby Parker beats a.k.a. Brands on 13 of the 15 factors compared between the two stocks.

About a.k.a. Brands

a.k.a. Brands Holding Corp. operates a portfolio of online fashion brands in the United States, Australia, and internationally. The company offers streetwear apparel, dresses, tops, bottoms, shoes, headwear, and accessories through its online stores under the Princess Polly, Petal & Pup, Culture Kings, and mnml brands. It also operates physical stores under the Culture Kings brand. The company was founded in 2018 and is headquartered in San Francisco, California.

About Warby Parker

Warby Parker Inc. provides eyewear products in the United States and Canada. The company offers eyeglasses, sunglasses, light-responsive lenses, blue-light-filtering lenses, non-prescription lenses, and contact lenses. It also provides accessories, such as cases, lenses kit with anti-fog spray, pouches, and anti-fog lens spray through its retail stores, website, and mobile apps. In addition, the company offers eye exams and vision tests. Warby Parker Inc. was incorporated in 2009 and is headquartered in New York, New York.