Financial Review: Allbirds (NASDAQ:BIRD) vs. Perfect Moment (NASDAQ:PMNT)

Perfect Moment (NASDAQ:PMNT) and Allbirds (NASDAQ:BIRD) are both small-cap consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, earnings, profitability and institutional ownership.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Perfect Moment	$21.31 million	0.76	-$8.72 million	($1.30)	-0.75
Allbirds	$189.76 million	0.21	-$152.46 million	($11.91)	-0.42

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

Insider and Institutional Ownership

23.0% of Perfect Moment shares are owned by institutional investors. Comparatively, 44.1% of Allbirds shares are owned by institutional investors. 45.5% 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.

Analyst Ratings

This is a breakdown of current ratings for Perfect Moment and Allbirds, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Perfect Moment	0	0	1	0	3.00
Allbirds	0	2	1	0	2.33

Perfect Moment currently has a consensus price target of $6.00, suggesting a potential upside of 515.38%. Allbirds has a consensus price target of $12.00, suggesting a potential upside of 140.96%. Given Perfect Moment’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Perfect Moment is more favorable than Allbirds.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Perfect Moment	-67.38%	-513.83%	-119.38%
Allbirds	-60.43%	-65.30%	-38.50%

Risk and Volatility

Perfect Moment has a beta of -3.46, indicating that its stock price is 446% less volatile than the S&P 500. Comparatively, Allbirds has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500.

Summary

Allbirds beats Perfect Moment on 8 of the 13 factors compared between the two stocks.

About Perfect Moment

Perfect Moment Ltd., together with its subsidiaries, owns and operates a fashion brand that offers ski, surf, and activewear collections under the brand name of Perfect Moment. It offers skiwear, outerwear, swimwear and activewear for women, men, and children. The company sells its collections directly to customers through e-commerce and to wholesale accounts, as well as through other sales partnerships. Perfect Moment Ltd. was founded in 1984 and is based in London, the United Kingdom.

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.