Analyzing Allbirds (NASDAQ:BIRD) and Fusemachines (NASDAQ:FUSE)

Fusemachines (NASDAQ:FUSE) and Allbirds (NASDAQ:BIRD) are both small-cap technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, analyst recommendations, earnings and risk.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fusemachines	$7.40 million	1.48	-$4.23 million	($0.13)	-2.60
Allbirds	$155.22 million	0.12	-$79.17 million	($8.99)	-0.23

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Fusemachines	N/A	N/A	N/A
Allbirds	N/A	N/A	N/A

Risk & Volatility

Fusemachines has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500. Comparatively, Allbirds has a beta of 2.6, meaning that its stock price is 160% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Fusemachines and Allbirds, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fusemachines	1	0	0	0	1.00
Allbirds	1	1	0	0	1.50

Institutional and Insider Ownership

46.8% of Fusemachines shares are owned by institutional investors. Comparatively, 44.1% of Allbirds shares are owned by institutional investors. 31.8% of Fusemachines shares are owned by insiders. Comparatively, 18.8% of Allbirds shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Fusemachines beats Allbirds on 5 of the 9 factors compared between the two stocks.

About Fusemachines

Fusemachines Inc. develops and delivers artificial intelligence (AI) as a service and machine learning software solutions. The company offers Fuse Anna which is an AI assistant for follow ups through daily reminders; and Fuse Prospector which is an artificial intelligence sales platform. Further, the company offers managed outbound services and AI as a service for big data processing, data management, and cloud analytics. Additionally, it offers Fusemachines AI fellowship program, which provides selected scholars from underserved communities with mentorship and resources to develop advanced skills in artificial intelligence and machine learning; as well as Fusemachines Academy, a learning platform to build and enhance skills. The company serves governments, financial institutions, and e-commerce companies. The company is based in New York, New York with an additional offices in Kathmandu, Nepal; Toronto, Canada; Kochi, India; Santo Domingo, Cuba.

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.