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

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

Profitability

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

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

Risk and Volatility

Kingold Jewelry has a beta of 35.87, meaning that its stock price is 3,487% more volatile than the S&P 500. Comparatively, Brilliant Earth Group has a beta of 1.34, meaning that its stock price is 34% more volatile than the S&P 500.

Analyst Recommendations

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

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

Brilliant Earth Group has a consensus price target of $1.80, indicating a potential upside of 25.87%. Given Brilliant Earth Group’s stronger consensus rating and higher possible upside, analysts clearly believe Brilliant Earth Group is more favorable than Kingold Jewelry.

Insider & Institutional Ownership

70.4% of Brilliant Earth Group shares are owned by institutional investors. 27.3% of Kingold Jewelry shares are owned by company insiders. Comparatively, 84.5% of Brilliant Earth Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kingold Jewelry	N/A	N/A	N/A	N/A	N/A
Brilliant Earth Group	$422.16 million	0.34	$540,000.00	($0.01)	-143.00

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

Summary

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

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.

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.