Head to Head Survey: a.k.a. Brands (NYSE:AKA) and Warby Parker (NYSE:WRBY)

Warby Parker (NYSE:WRBY) and a.k.a. Brands (NYSE:AKA) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, risk, valuation, earnings, institutional ownership, analyst recommendations and profitability.

Risk & Volatility

Warby Parker has a beta of 1.95, indicating that its share price is 95% more volatile than the S&P 500. Comparatively, a.k.a. Brands has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500.

Earnings and Valuation

This table compares Warby Parker and a.k.a. Brands”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Warby Parker	$871.91 million	2.80	$1.64 million	$0.07	322.46
a.k.a. Brands	$600.21 million	0.19	-$31.43 million	($2.48)	-4.19

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

Institutional & Insider Ownership

93.2% of Warby Parker shares are held by institutional investors. Comparatively, 55.3% of a.k.a. Brands shares are held by institutional investors. 16.8% of Warby Parker shares are held by company insiders. Comparatively, 18.2% of a.k.a. Brands shares are held by company 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.

Profitability

This table compares Warby Parker and a.k.a. Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Warby Parker	0.85%	3.36%	1.72%
a.k.a. Brands	-4.43%	-20.93%	-5.17%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Warby Parker and a.k.a. Brands, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Warby Parker	1	3	6	1	2.64
a.k.a. Brands	1	2	1	0	2.00

Warby Parker currently has a consensus price target of $30.00, suggesting a potential upside of 32.91%. a.k.a. Brands has a consensus price target of $19.00, suggesting a potential upside of 83.04%. Given a.k.a. Brands’ higher probable upside, analysts clearly believe a.k.a. Brands is more favorable than Warby Parker.

Summary

Warby Parker beats a.k.a. Brands on 13 of the 15 factors compared between the two stocks.

About Warby Parker

Warby Parker Inc. provides eyewear products in the United States and Canada. The company offers eyeglasses, sunglasses, light-responsive lenses, blue-light-filtering lenses, non-prescription lenses, and contact lenses. It also provides accessories, such as cases, lenses kit with anti-fog spray, pouches, and anti-fog lens spray through its retail stores, website, and mobile apps. In addition, the company offers eye exams and vision tests. Warby Parker Inc. was incorporated in 2009 and is headquartered in New York, New York.

About a.k.a. Brands

a.k.a. Brands Holding Corp. operates a portfolio of online fashion brands in the United States, Australia, and internationally. The company offers streetwear apparel, dresses, tops, bottoms, shoes, headwear, and accessories through its online stores under the Princess Polly, Petal & Pup, Culture Kings, and mnml brands. It also operates physical stores under the Culture Kings brand. The company was founded in 2018 and is headquartered in San Francisco, California.