Warby Parker (NYSE:WRBY – Get Free Report) and a.k.a. Brands (NYSE:AKA – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, profitability, earnings, dividends, valuation, risk and analyst recommendations.
Analyst Ratings
This is a summary of recent ratings and price targets for Warby Parker and a.k.a. Brands, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Warby Parker | 1 | 3 | 6 | 0 | 2.50 |
| a.k.a. Brands | 1 | 2 | 1 | 0 | 2.00 |
Warby Parker presently has a consensus target price of $30.00, suggesting a potential upside of 21.70%. a.k.a. Brands has a consensus target price of $19.00, suggesting a potential upside of 86.64%. Given a.k.a. Brands’ higher possible upside, analysts clearly believe a.k.a. Brands is more favorable than Warby Parker.
Insider and Institutional 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 hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
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% |
Valuation & Earnings
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 | $911.61 million | 2.93 | $1.64 million | $0.07 | 352.14 |
| a.k.a. Brands | $603.56 million | 0.19 | -$31.43 million | ($2.48) | -4.10 |
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.
Risk & Volatility
Warby Parker has a beta of 1.89, meaning that its share price is 89% more volatile than the S&P 500. Comparatively, a.k.a. Brands has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500.
Summary
Warby Parker beats a.k.a. Brands on 12 of the 14 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.
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