Allbirds (NASDAQ:BIRD – Get Free Report) and Applied Digital (NASDAQ:APLD – Get Free Report) are both technology companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, profitability, risk, analyst recommendations and dividends.
Risk & Volatility
Allbirds has a beta of 2.63, suggesting that its stock price is 163% more volatile than the S&P 500. Comparatively, Applied Digital has a beta of 5.58, suggesting that its stock price is 458% more volatile than the S&P 500.
Profitability
This table compares Allbirds and Applied Digital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Allbirds | -72.82% | -231.86% | -81.53% |
| Applied Digital | -51.28% | -27.21% | -5.23% |
Valuation and Earnings
This table compares Allbirds and Applied Digital”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Allbirds | $155.22 million | 0.07 | -$77.28 million | ($8.99) | -0.14 |
| Applied Digital | $611.31 million | 7.01 | -$244.00 million | ($1.64) | -8.64 |
Allbirds has higher earnings, but lower revenue than Applied Digital. Applied Digital is trading at a lower price-to-earnings ratio than Allbirds, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
44.1% of Allbirds shares are held by institutional investors. Comparatively, 65.7% of Applied Digital shares are held by institutional investors. 18.8% of Allbirds shares are held by insiders. Comparatively, 9.5% of Applied Digital shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of current ratings for Allbirds and Applied Digital, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Allbirds | 1 | 1 | 0 | 0 | 1.50 |
| Applied Digital | 2 | 2 | 12 | 3 | 2.84 |
Applied Digital has a consensus target price of $57.75, suggesting a potential upside of 307.55%. Given Applied Digital’s stronger consensus rating and higher possible upside, analysts plainly believe Applied Digital is more favorable than Allbirds.
Summary
Applied Digital beats Allbirds on 12 of the 15 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 Applied Digital
Applied Digital Corporation designs, develops, and operates datacenters in North America. Its datacenters provide digital infrastructure solutions to the high-performance computing industry. The company also provides artificial intelligence cloud services, high performance computing datacenter hosting, and crypto datacenter hosting services. The company was formerly known as Applied Blockchain, Inc. and changed its name to Applied Digital Corporation in November 2022. Applied Digital Corporation is based in Dallas, Texas.
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