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 investment? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, earnings, profitability, institutional ownership and valuation.
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% |
Analyst Ratings
This is a summary of recent recommendations for Brilliant Earth Group and Warby Parker, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Brilliant Earth Group | 1 | 7 | 0 | 0 | 1.88 |
| Warby Parker | 0 | 4 | 6 | 0 | 2.60 |
Brilliant Earth Group currently has a consensus target price of $1.74, indicating a potential upside of 14.31%. Warby Parker has a consensus target price of $30.00, indicating a potential upside of 17.11%. Given Warby Parker’s stronger consensus rating and higher possible upside, analysts clearly believe Warby Parker is more favorable than Brilliant Earth Group.
Risk & Volatility
Brilliant Earth Group has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500. Comparatively, Warby Parker has a beta of 1.89, suggesting that its share price is 89% more volatile than the S&P 500.
Insider & Institutional Ownership
70.4% of Brilliant Earth Group shares are held by institutional investors. Comparatively, 93.2% of Warby Parker shares are held by institutional investors. 83.2% of Brilliant Earth Group shares are held by insiders. Comparatively, 16.8% of Warby Parker shares are held 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.
Earnings & Valuation
This table compares Brilliant Earth Group and Warby Parker”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 | $437.48 million | 0.35 | -$3.63 million | ($0.29) | -5.24 |
| Warby Parker | $871.91 million | 3.18 | $1.64 million | $0.07 | 365.96 |
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.
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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