Reviewing Victoria’s Secret & Co. (NYSE:VSCO) & Allbirds (NASDAQ:BIRD)

Victoria’s Secret & Co. (NYSE:VSCO) and Allbirds (NASDAQ:BIRD) are both retail/wholesale companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.

Valuation & Earnings

This table compares Victoria’s Secret & Co. 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
Victoria’s Secret & Co.	$6.39 billion	0.68	$165.00 million	$2.05	26.24
Allbirds	$189.76 million	0.18	-$93.32 million	($10.37)	-0.39

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

Profitability

This table compares Victoria’s Secret & Co. and Allbirds’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Victoria’s Secret & Co.	2.67%	33.47%	4.82%
Allbirds	-51.90%	-108.35%	-56.25%

Institutional & Insider Ownership

90.3% of Victoria’s Secret & Co. shares are owned by institutional investors. Comparatively, 44.1% of Allbirds shares are owned by institutional investors. 0.5% of Victoria’s Secret & Co. shares are owned by insiders. Comparatively, 30.7% of Allbirds shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Victoria’s Secret & Co. has a beta of 2.24, suggesting that its stock price is 124% more volatile than the S&P 500. Comparatively, Allbirds has a beta of 1.95, suggesting that its stock price is 95% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Victoria’s Secret & Co. and Allbirds, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Victoria’s Secret & Co.	1	5	7	1	2.57
Allbirds	1	1	1	0	2.00

Victoria’s Secret & Co. currently has a consensus price target of $53.30, indicating a potential downside of 0.92%. Allbirds has a consensus price target of $11.00, indicating a potential upside of 171.60%. Given Allbirds’ higher possible upside, analysts plainly believe Allbirds is more favorable than Victoria’s Secret & Co..

Summary

Victoria’s Secret & Co. beats Allbirds on 13 of the 15 factors compared between the two stocks.

About Victoria’s Secret & Co.

Victoria’s Secret & Co. operates as a lingerie, clothing and beauty retailer. It offers bras, panties, lingerie, pajamas, sleep, sport and swim apparel, and beauty products. The company was founded in 1963 and is headquartered in Reynoldsburg, OH.

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.