Allbirds vs NIKE

Allbirds and Nike are two prominent players in the retail industry, both known for their innovative products and strong brand presence. While Nike is a long-established global giant in the sportswear market, Allbirds has quickly gained popularity for its sustainable approach to footwear. Investors are constantly comparing the two stocks, considering factors such as market performance, growth potential, and consumer trends. This comparison will delve into the financial standing and future outlook of these two companies to determine which stock may be a better investment choice.

Allbirds or NIKE?

When comparing Allbirds and NIKE, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Allbirds and NIKE.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Allbirds has a dividend yield of -%, while NIKE has a dividend yield of 2.25%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Allbirds reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, NIKE reports a 5-year dividend growth of 11.13% year and a payout ratio of 41.56%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Allbirds P/E ratio at -11.50 and NIKE's P/E ratio at 23.20. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Allbirds P/B ratio is 10.77 while NIKE's P/B ratio is 8.82.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Allbirds has seen a 5-year revenue growth of 0.25%, while NIKE's is 0.47%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Allbirds's ROE at -74.29% and NIKE's ROE at 37.37%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $9.91 for Allbirds and $81.05 for NIKE. Over the past year, Allbirds's prices ranged from $9.06 to $29.00, with a yearly change of 220.09%. NIKE's prices fluctuated between $70.75 and $123.39, with a yearly change of 74.40%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.