Head-To-Head Review: Tapestry (NYSE:TPR) vs. Allbirds (NASDAQ:BIRD)

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allbirds	$189.76 million	0.13	-$93.32 million	($10.37)	-0.30
Tapestry	$7.01 billion	4.10	$183.20 million	$2.42	58.73

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

Analyst Ratings

This is a summary of current ratings and target prices for Allbirds and Tapestry, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allbirds	1	2	0	0	1.67
Tapestry	0	5	13	2	2.85

Allbirds currently has a consensus price target of $11.00, indicating a potential upside of 255.99%. Tapestry has a consensus price target of $151.06, indicating a potential upside of 6.29%. Given Allbirds’ higher probable upside, analysts plainly believe Allbirds is more favorable than Tapestry.

Insider & Institutional Ownership

44.1% of Allbirds shares are held by institutional investors. Comparatively, 90.8% of Tapestry shares are held by institutional investors. 30.7% of Allbirds shares are held by insiders. Comparatively, 1.3% of Tapestry shares are held by 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 Tapestry’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Allbirds	-51.90%	-108.35%	-56.25%
Tapestry	6.95%	157.98%	19.48%

Risk and Volatility

Allbirds has a beta of 1.99, meaning that its share price is 99% more volatile than the S&P 500. Comparatively, Tapestry has a beta of 1.55, meaning that its share price is 55% more volatile than the S&P 500.

Summary

Tapestry beats Allbirds on 12 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 Tapestry

Tapestry, Inc. provides luxury accessories and branded lifestyle products in the United States, Japan, Greater China, and internationally. The company operates in three segments: Coach, Kate Spade, and Stuart Weitzman. It offers women’s handbags; and women’s accessories, such as small leather goods which includes mini and micro handbags, money pieces, wristlets, pouches, and cosmetic cases, as well as novelty accessories including address books, time management and travel accessories, sketchbooks, and portfolios; and belts, key rings, and charms. The company also provides men products, which includes bag collections, such as business cases, computer bags, messenger-style bags, backpacks, and totes; small leather goods including wallets, card cases, travel organizers, and belts; and footwear, watches, fragrances, sunglasses, novelty accessories, and ready-to-wear items. In addition, it offers other products including women’s footwear and fragrances; eyewear and sunglasses; and jewelry, such as bracelets, necklaces, rings, and earrings, watches, and other women’s seasonal lifestyle apparel collections, including outerwear, ready-to-wear and cold weather accessories, such as gloves, scarves, and hats. Further, the company provides kids items, housewares, and home accessories, such as fashion bedding and tableware, stationery, and gifts. It offers its products through e-commerce sites and concession shop-in-shops, wholesale, and third-party distributors under the Coach, Kate Spade, and Stuart Weitzman brand names. The company was formerly known as Coach, Inc. and changed its name to Tapestry, Inc. in October 2017. Tapestry, Inc. was founded in 1941 and is headquartered in New York, New York.