Reviewing Torrid (NYSE:CURV) and Allbirds (NASDAQ:BIRD)

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Torrid	$1.04 billion	0.12	$16.32 million	($0.01)	-123.70
Allbirds	$189.76 million	0.19	-$93.32 million	($10.37)	-0.41

Torrid has higher revenue and earnings than Allbirds. Torrid 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 Torrid and Allbirds’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Torrid	-0.18%	-1.69%	-0.43%
Allbirds	-51.90%	-108.35%	-56.25%

Volatility and Risk

Torrid has a beta of 1.49, suggesting that its share price is 49% more volatile than the S&P 500. Comparatively, Allbirds has a beta of 1.96, suggesting that its share price is 96% more volatile than the S&P 500.

Insider & Institutional Ownership

81.8% of Torrid shares are owned by institutional investors. Comparatively, 44.1% of Allbirds shares are owned by institutional investors. 5.9% of Torrid shares are owned by insiders. Comparatively, 30.7% of Allbirds shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for Torrid and Allbirds, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Torrid	4	3	1	0	1.63
Allbirds	1	1	1	0	2.00

Torrid currently has a consensus price target of $1.44, indicating a potential upside of 16.41%. Allbirds has a consensus price target of $11.00, indicating a potential upside of 155.81%. Given Allbirds’ stronger consensus rating and higher probable upside, analysts clearly believe Allbirds is more favorable than Torrid.

Summary

Torrid beats Allbirds on 7 of the 13 factors compared between the two stocks.

About Torrid

Torrid Holdings Inc. operates in women’s plus-size apparel and intimates market in North America. The company designs, develops, and merchandises its products under the Torrid, Torrid Curve, CURV, and Lovesick brand names. It is involved in the sale of tops, bottoms, dresses, denims, activewear, intimates, sleep wear, swim wear, and outerwear products; and non-apparel products comprising accessories, footwear, and beauty products. The company sells its products directly to consumers through its e-commerce platform and its physical stores. Torrid Holdings Inc. was incorporated in 2019 and is headquartered in City Of Industry, California.

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.