Allbirds (NASDAQ:BIRD) versus Esprit (OTCMKTS:ESPGY) Financial Review

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Allbirds	-53.36%	-173.54%	-67.54%
Esprit	N/A	N/A	N/A

Institutional & Insider Ownership

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, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Allbirds and Esprit, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allbirds	1	2	0	0	1.67
Esprit	0	0	0	0	0.00

Allbirds currently has a consensus target price of $8.00, indicating a potential upside of 97.53%. Given Allbirds’ stronger consensus rating and higher possible upside, analysts plainly believe Allbirds is more favorable than Esprit.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allbirds	$142.67 million	0.25	-$77.28 million	($9.12)	-0.44
Esprit	$5.38 million	0.39	-$157.30 million	N/A	N/A

Allbirds has higher revenue and earnings than Esprit.

Summary

Allbirds beats Esprit on 6 of the 10 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 Esprit

Esprit Holdings Limited, an investment holding company, engages in retail and wholesale distribution, and licensing of fashion and non-apparel products. It operates through Europe; Asia; E-shop; and Corporate Services, Sourcing, Licensing and Others segments. The company offers apparel and accessories under the ESPRIT brand name through retail stores and e-commerce platforms. It is also involved in the sourcing, purchasing, distributing, and sale of merchandise; provision of financial and treasury services, as well as logistic services comprising customs dealing and quality control; design and image directions; and conceptualization and development of global uniform image businesses. Esprit Holdings Limited was founded in 1968 and is headquartered in North Point, Hong Kong.