Reviewing ON (NYSE:ONON) and Allbirds (NASDAQ:BIRD)

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

Risk and Volatility

ON has a beta of 2.23, suggesting that its stock price is 123% more volatile than the S&P 500. Comparatively, Allbirds has a beta of 1.85, suggesting that its stock price is 85% more volatile than the S&P 500.

Insider and Institutional Ownership

36.4% of ON shares are owned by institutional investors. Comparatively, 44.1% of Allbirds shares are owned by institutional investors. 30.7% of Allbirds shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ON	2	3	18	1	2.75
Allbirds	1	2	0	0	1.67

ON presently has a consensus target price of $58.62, suggesting a potential upside of 64.80%. Allbirds has a consensus target price of $8.00, suggesting a potential upside of 221.29%. Given Allbirds’ higher possible upside, analysts clearly believe Allbirds is more favorable than ON.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ON	6.59%	13.25%	7.56%
Allbirds	-50.69%	-127.72%	-60.21%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ON	$3.64 billion	6.24	$245.87 million	$0.72	49.40
Allbirds	$152.47 million	0.14	-$77.28 million	($9.48)	-0.26

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

Summary

ON beats Allbirds on 12 of the 15 factors compared between the two stocks.

About ON

On Holding AG engages in the development and distribution of sports products such as footwear, apparel, and accessories for high-performance running, outdoor, all-day activities, and tennis. It sells its products worldwide through independent retailers and global distributors, its own online presence, and its own stores. The company was founded by David Allemann, Olivier Bernhard, and Caspar Coppetti in January 2010 and is headquartered in Zurich, Switzerland.

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.