Reviewing Kingold Jewelry (OTCMKTS:KGJI) & Brilliant Earth Group (NASDAQ:BRLT)

Brilliant Earth Group (NASDAQ:BRLT) and Kingold Jewelry (OTCMKTS:KGJI) are both retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends.

Insider and Institutional Ownership

70.4% of Brilliant Earth Group shares are owned by institutional investors. 84.5% of Brilliant Earth Group shares are owned by company insiders. Comparatively, 27.3% of Kingold Jewelry shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Brilliant Earth Group has a beta of 1.35, indicating that its share price is 35% more volatile than the S&P 500. Comparatively, Kingold Jewelry has a beta of 50.3, indicating that its share price is 4,930% more volatile than the S&P 500.

Valuation & Earnings

This table compares Brilliant Earth Group and Kingold Jewelry”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brilliant Earth Group	$422.16 million	0.32	$540,000.00	($0.01)	-138.00
Kingold Jewelry	N/A	N/A	N/A	N/A	N/A

Brilliant Earth Group has higher revenue and earnings than Kingold Jewelry.

Analyst Recommendations

This is a breakdown of recent ratings for Brilliant Earth Group and Kingold Jewelry, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brilliant Earth Group	0	3	0	0	2.00
Kingold Jewelry	0	0	0	0	0.00

Brilliant Earth Group currently has a consensus target price of $1.80, indicating a potential upside of 30.43%. Given Brilliant Earth Group’s stronger consensus rating and higher probable upside, analysts clearly believe Brilliant Earth Group is more favorable than Kingold Jewelry.

Profitability

This table compares Brilliant Earth Group and Kingold Jewelry’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brilliant Earth Group	0.53%	0.81%	0.31%
Kingold Jewelry	N/A	N/A	N/A

Summary

Brilliant Earth Group beats Kingold Jewelry on 8 of the 9 factors compared between the two stocks.

About Brilliant Earth Group

Brilliant Earth Group, Inc. designs, procures, and sells diamonds, gemstones, and jewelry in the United States and internationally. The company’s product assortment and merchandise include a collection of diamond engagement rings, wedding and anniversary rings, gemstone rings, and fine jewelry. It sells directly to consumers through its omnichannel sales platform, including e-commerce and showrooms. Brilliant Earth Group, Inc. was founded in 2005 and is headquartered in San Francisco, California.

About Kingold Jewelry

Kingold Jewelry, Inc. designs, manufactures, and sells 24-karat gold jewelry and Chinese ornaments in the People’s Republic of China. The company offers a range of in-house designed products, including gold necklaces, rings, earrings, bracelets, gold bars, and pendants. It also invests in gold. The company sells its products to wholesalers, distributors, and retailers under the Kingold brand. Kingold Jewelry, Inc. was founded in 2002 and is based in Wuhan, the People’s Republic of China.