Brilliant Earth Group (NASDAQ:BRLT – Get Free Report) and Warby Parker (NYSE:WRBY – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, dividends, institutional ownership, profitability and analyst recommendations.
Risk & Volatility
Brilliant Earth Group has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500. Comparatively, Warby Parker has a beta of 1.89, indicating that its share price is 89% more volatile than the S&P 500.
Valuation and Earnings
This table compares Brilliant Earth Group and Warby Parker”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Brilliant Earth Group | $449.28 million | 0.34 | -$3.63 million | ($0.29) | -5.21 |
| Warby Parker | $911.61 million | 3.08 | $1.64 million | $0.07 | 370.19 |
Warby Parker has higher revenue and earnings than Brilliant Earth Group. Brilliant Earth Group is trading at a lower price-to-earnings ratio than Warby Parker, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and target prices for Brilliant Earth Group and Warby Parker, 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 |
| Warby Parker | 1 | 3 | 6 | 0 | 2.50 |
Brilliant Earth Group presently has a consensus price target of $1.74, indicating a potential upside of 15.07%. Warby Parker has a consensus price target of $30.00, indicating a potential upside of 15.77%. Given Warby Parker’s stronger consensus rating and higher probable upside, analysts plainly believe Warby Parker is more favorable than Brilliant Earth Group.
Institutional & Insider Ownership
70.4% of Brilliant Earth Group shares are owned by institutional investors. Comparatively, 93.2% of Warby Parker shares are owned by institutional investors. 83.2% of Brilliant Earth Group shares are owned by insiders. Comparatively, 16.8% of Warby Parker shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares Brilliant Earth Group and Warby Parker’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% |
| Warby Parker | 0.85% | 3.36% | 1.72% |
Summary
Warby Parker beats Brilliant Earth Group on 13 of the 14 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 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.
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