Head-To-Head Analysis: Children’s Place (NASDAQ:PLCE) vs. Allbirds (NASDAQ:BIRD)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Children’s Place	-9.09%	N/A	-12.53%
Allbirds	-53.36%	-173.54%	-67.54%

Volatility & Risk

Children’s Place has a beta of 1.9, suggesting that its share price is 90% more volatile than the S&P 500. Comparatively, Allbirds has a beta of 2.56, suggesting that its share price is 156% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Children’s Place and Allbirds, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Children’s Place	1	1	0	0	1.50
Allbirds	1	2	0	0	1.67

Children’s Place currently has a consensus target price of $4.00, indicating a potential upside of 16.28%. Allbirds has a consensus target price of $8.00, indicating a potential upside of 34.00%. Given Allbirds’ stronger consensus rating and higher probable upside, analysts plainly believe Allbirds is more favorable than Children’s Place.

Institutional & Insider Ownership

44.1% of Allbirds shares are held by institutional investors. 0.9% of Children’s Place shares are held by insiders. Comparatively, 30.7% of Allbirds shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Children’s Place and Allbirds”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Children’s Place	$1.21 billion	0.06	-$88.26 million	($4.84)	-0.71
Allbirds	$152.47 million	0.34	-$77.28 million	($9.12)	-0.65

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

Summary

Allbirds beats Children’s Place on 8 of the 13 factors compared between the two stocks.

About Children’s Place

The Children’s Place, Inc. engages in the provision of apparel, footwear, accessories, and other items for children. The firm also designs contracts to manufacture and sell fashionable and value-priced merchandise under the brand names of The Children’s Place, Baby Place, and Gymboree. It operates through The Children’s Place U.S. and The Children’s Place International segments. The Children’s Place U.S. segment refers to the company’s U.S. and Puerto Rico-based stores and revenue from its U.S. based wholesale business. The Children’s Place International segment is involved in the Canadian-based stores, revenue from the company’s Canadian-based wholesale business, as well as revenue from international franchisees. The company was founded by David Pulver and Clinton A. Clark in 1969 and is headquartered in Secaucus, NJ.

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.