Genesco (NYSE:GCO) and Allbirds (NASDAQ:BIRD) Head to Head Review

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allbirds	$152.47 million	0.25	-$77.28 million	($9.48)	-0.47
Genesco	$2.44 billion	0.15	$13.27 million	$1.13	29.15

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

Risk & Volatility

Allbirds has a beta of 2.72, suggesting that its stock price is 172% more volatile than the S&P 500. Comparatively, Genesco has a beta of 1.82, suggesting that its stock price is 82% more volatile than the S&P 500.

Insider & Institutional Ownership

44.1% of Allbirds shares are owned by institutional investors. Comparatively, 94.5% of Genesco shares are owned by institutional investors. 30.7% of Allbirds shares are owned by company insiders. Comparatively, 23.1% of Genesco 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Allbirds	-50.69%	-127.72%	-60.21%
Genesco	0.54%	2.92%	1.08%

Analyst Recommendations

This is a breakdown of current ratings for Allbirds and Genesco, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allbirds	1	2	0	0	1.67
Genesco	0	4	0	1	2.40

Allbirds currently has a consensus target price of $8.00, indicating a potential upside of 81.41%. Genesco has a consensus target price of $34.00, indicating a potential upside of 3.22%. Given Allbirds’ higher possible upside, equities research analysts clearly believe Allbirds is more favorable than Genesco.

Summary

Genesco beats Allbirds on 10 of the 14 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 Genesco

Genesco Inc. operates as a retailer and wholesaler of footwear, apparel, and accessories in the United States, Puerto Rico, Canada, the United Kingdom, and the Republic of Ireland. The company operates through four segments: Journeys Group, Schuh Group, Johnston & Murphy Group, and Genesco Brands. The Journeys Group segment offers footwear and accessories through the Journeys, Journeys Kidz, and Little Burgundy retail chains, as well as through e-commerce and catalogs for young men, women, and children. Its Schuh Group segment operates Schuh retail footwear stores that offer casual and athletic footwear, as well as sells footwear through e-commerce. The Johnston & Murphy Group segment involved in the retail and e-commerce operations; and wholesale distribution of men’s dress and casual footwear, apparel, and accessories, as well as women’s footwear and accessories. Its Genesco Brands Group segment markets footwear under the Levi’s, Dockers, and G.H. Bass brands for men, women, and children, as well as designs and manufactures the STARTER brands footwear. The company operates through Journeys, Journeys Kidz, Schuh, Little Burgundy, and Johnston & Murphy brand names; and e-commerce websites, including journeys.com, journeyskidz.com, journeys.ca, schuh.co.uk, schuh.ie, schuh.eu, johnstonmurphy.com, littleburgundyshoes.com, johnstonmurphy.ca, nashvilleshoewarehouse.com, and dockersshoes.com. Genesco Inc. was incorporated in 1934 and is headquartered in Nashville, Tennessee.