Brilliant Earth Group (NASDAQ:BRLT – Get Free Report) and Wayfair (NYSE:W – Get Free Report) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, analyst recommendations, valuation, risk and dividends.
Profitability
This table compares Brilliant Earth Group and Wayfair’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Brilliant Earth Group | -0.66% | -15.48% | -5.99% |
| Wayfair | -2.49% | -3.40% | 3.06% |
Valuation and Earnings
This table compares Brilliant Earth Group and Wayfair”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Brilliant Earth Group | $437.48 million | 0.34 | -$3.63 million | ($0.29) | -5.02 |
| Wayfair | $12.46 billion | 1.14 | -$313.00 million | ($2.46) | -43.89 |
Brilliant Earth Group has higher earnings, but lower revenue than Wayfair. Wayfair is trading at a lower price-to-earnings ratio than Brilliant Earth Group, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Brilliant Earth Group has a beta of 1.42, suggesting that its stock price is 42% more volatile than the S&P 500. Comparatively, Wayfair has a beta of 3.02, suggesting that its stock price is 202% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Brilliant Earth Group and Wayfair, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Brilliant Earth Group | 1 | 7 | 0 | 0 | 1.88 |
| Wayfair | 1 | 11 | 18 | 2 | 2.66 |
Brilliant Earth Group presently has a consensus price target of $1.74, suggesting a potential upside of 19.42%. Wayfair has a consensus price target of $120.93, suggesting a potential upside of 12.01%. Given Brilliant Earth Group’s higher probable upside, research analysts clearly believe Brilliant Earth Group is more favorable than Wayfair.
Institutional & Insider Ownership
70.4% of Brilliant Earth Group shares are held by institutional investors. Comparatively, 89.7% of Wayfair shares are held by institutional investors. 83.2% of Brilliant Earth Group shares are held by insiders. Comparatively, 18.4% of Wayfair shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
Wayfair beats Brilliant Earth Group on 10 of the 15 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 Wayfair
Wayfair Inc. provides e-commerce business in the United States and internationally. The company offers approximately thirty million products for the home sector. It offers online selections of furniture, décor, housewares, and home improvement products through its sites consisting of Wayfair, Joss & Main, AllModern, Birch Lane, Perigold, and Wayfair Professional. The company offers its products under the Three Posts and Mercury Row brand name. The company was founded in 2002 and is headquartered in Boston, Massachusetts.
Receive News & Ratings for Brilliant Earth Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Brilliant Earth Group and related companies with MarketBeat.com's FREE daily email newsletter.
