Xcel Brands (NASDAQ:XELB – Get Free Report) and Allbirds (NASDAQ:BIRD – Get Free Report) are both small-cap retail/wholesale companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, earnings, profitability and valuation.
Profitability
This table compares Xcel Brands and Allbirds’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Xcel Brands | -437.09% | -51.46% | -24.73% |
| Allbirds | -51.90% | -108.35% | -56.25% |
Valuation & Earnings
This table compares Xcel Brands and Allbirds”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Xcel Brands | $8.26 million | 1.35 | -$22.40 million | ($7.86) | -0.24 |
| Allbirds | $189.76 million | 0.13 | -$93.32 million | ($10.37) | -0.29 |
Xcel Brands has higher earnings, but lower revenue than Allbirds. Allbirds is trading at a lower price-to-earnings ratio than Xcel Brands, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Xcel Brands has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.Comparatively, Allbirds has a beta of 1.96, indicating that its stock price is 96% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and price targets for Xcel Brands and Allbirds, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Xcel Brands | 1 | 0 | 1 | 0 | 2.00 |
| Allbirds | 1 | 2 | 0 | 0 | 1.67 |
Xcel Brands currently has a consensus target price of $3.00, suggesting a potential upside of 58.73%. Allbirds has a consensus target price of $11.00, suggesting a potential upside of 266.67%. Given Allbirds’ higher possible upside, analysts clearly believe Allbirds is more favorable than Xcel Brands.
Insider & Institutional Ownership
18.6% of Xcel Brands shares are held by institutional investors. Comparatively, 44.1% of Allbirds shares are held by institutional investors. 29.5% of Xcel Brands shares are held by company insiders. Comparatively, 30.7% of Allbirds shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Summary
Xcel Brands beats Allbirds on 8 of the 14 factors compared between the two stocks.
About Xcel Brands
Xcel Brands, Inc., together with its subsidiaries, operates as a media and consumer products company in the United States. The company designs, produces, markets, wholesales, and sells branded apparel, footwear, accessories, jewelry, home goods, and other consumer products; and acquires consumer lifestyle brands, including the Isaac Mizrahi, the LOGO by Lori Goldstein, the Judith Ripka, the Halston brand, the C Wonder, the TowerHill by Christie Brinkley brand (the CB brand), and other brands, as well as manages the Longaberger brand. It licenses its brands to third parties; and designs, produces, markets, and distributes through an omni-channel retail sales strategy, which include distribution through interactive television, digital live-stream shopping, brick-and-mortar retail, and e-commerce channels. The company also offers live streaming, social media and other marketing, and public relations support for its brands. In addition, it markets its brands through www.isaacmizrahi.com; www.halston.com; www.judithripka.com; www.cwonder.com; www.lorigoldstein.com; and www.longaberger.com. Xcel Brands, Inc. was founded in 2011 and is headquartered in New York, New York.
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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