Comparing Asos Pls (OTCMKTS:ASOMY) and Allbirds (NASDAQ:BIRD)

Allbirds (NASDAQ:BIRD) and Asos Pls (OTCMKTS:ASOMY) are both small-cap retail/wholesale companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.

Insider and Institutional Ownership

44.1% of Allbirds shares are held by institutional investors. 30.7% of Allbirds shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Allbirds has a beta of 1.99, indicating that its share price is 99% more volatile than the S&P 500. Comparatively, Asos Pls has a beta of 2.23, indicating that its share price is 123% more volatile than the S&P 500.

Profitability

This table compares Allbirds and Asos Pls’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Allbirds	-51.90%	-108.35%	-56.25%
Asos Pls	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings and price targets for Allbirds and Asos Pls, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allbirds	1	2	0	0	1.67
Asos Pls	0	0	0	1	4.00

Allbirds presently has a consensus target price of $11.00, suggesting a potential upside of 251.44%. Given Allbirds’ higher possible upside, equities analysts clearly believe Allbirds is more favorable than Asos Pls.

Valuation and Earnings

This table compares Allbirds and Asos Pls”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allbirds	$189.76 million	0.14	-$93.32 million	($10.37)	-0.30
Asos Pls	$3.23 billion	0.12	-$388.99 million	N/A	N/A

Allbirds has higher earnings, but lower revenue than Asos Pls.

Summary

Asos Pls beats Allbirds on 7 of the 12 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 Asos Pls

ASOS Plc operates as an online fashion retailer in the United Kingdom, the United States, Australia, France, Germany, Spain, Italy, Sweden, the Netherlands, Denmark, Poland, and internationally. It offers womenswear and menswear products. The company sells its products under the ASOS Design, ASOS Edition, ASOS Luxe, ASOS 4505, Collusion, Reclaimed Vintage, Topshop, Topman, Miss Selfridge, HIIT, AsYou, Dark Future, UNRVLLD/SPPLY, Crooked Tongues, Daysocial, Actual, and Weekend Collective brands, as well as through third-party brands. It is also involved in the employer of marketing staff and payment processing businesses, as well as acts as a vehicle for issue of convertible bonds. ASOS Plc was incorporated in 2000 and is headquartered in London, the United Kingdom.