Build-A-Bear Workshop (NYSE:BBW – Get Free Report) and Brilliant Earth Group (NASDAQ:BRLT – Get Free Report) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, analyst recommendations, institutional ownership, dividends, valuation and profitability.
Analyst Recommendations
This is a summary of current recommendations for Build-A-Bear Workshop and Brilliant Earth Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Build-A-Bear Workshop | 1 | 1 | 2 | 0 | 2.25 |
| Brilliant Earth Group | 1 | 7 | 0 | 0 | 1.88 |
Build-A-Bear Workshop presently has a consensus price target of $53.50, indicating a potential upside of 118.86%. Brilliant Earth Group has a consensus price target of $1.74, indicating a potential upside of 24.11%. Given Build-A-Bear Workshop’s stronger consensus rating and higher probable upside, analysts clearly believe Build-A-Bear Workshop is more favorable than Brilliant Earth Group.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Build-A-Bear Workshop | 9.96% | 29.66% | 13.60% |
| Brilliant Earth Group | -0.66% | -15.48% | -5.99% |
Insider & Institutional Ownership
79.3% of Build-A-Bear Workshop shares are held by institutional investors. Comparatively, 70.4% of Brilliant Earth Group shares are held by institutional investors. 4.0% of Build-A-Bear Workshop shares are held by company insiders. Comparatively, 83.2% of Brilliant Earth Group shares are held 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.
Earnings & Valuation
This table compares Build-A-Bear Workshop and Brilliant Earth Group”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Build-A-Bear Workshop | $529.83 million | 0.57 | $52.20 million | $4.03 | 6.07 |
| Brilliant Earth Group | $437.48 million | 0.33 | -$3.63 million | ($0.29) | -4.83 |
Build-A-Bear Workshop has higher revenue and earnings than Brilliant Earth Group. Brilliant Earth Group is trading at a lower price-to-earnings ratio than Build-A-Bear Workshop, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Build-A-Bear Workshop has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500. Comparatively, Brilliant Earth Group has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500.
Summary
Build-A-Bear Workshop beats Brilliant Earth Group on 12 of the 14 factors compared between the two stocks.
About Build-A-Bear Workshop
Build-A-Bear Workshop, Inc. operates as a multi-channel retailer of plush animals and related products in the United States, Canada, the United Kingdom, Ireland, and internationally. The company operates through three segments: Direct-to-Consumer, Commercial, and International Franchising. Its merchandise comprises various styles of plush products to be stuffed, pre-stuffed plush products, and sounds and scents that can be added to the stuffed animals, as well as range of clothing, shoes and accessories, and other toy and novelty items, including family sleepwear. The company operates its stores under the Build-A-Bear Workshop brand name; and sells its products through its e-commerce sites and third-party marketplace sites. Build-A-Bear Workshop, Inc. was founded in 1997 and is headquartered in Saint Louis, Missouri.
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.
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