Brilliant Earth Group (NASDAQ:BRLT) and Wayfair (NYSE:W) Head-To-Head Comparison

Brilliant Earth Group (NASDAQ:BRLT) and Wayfair (NYSE:W) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, dividends, institutional ownership and risk.

Earnings and Valuation

This table compares Brilliant Earth Group and Wayfair”s revenue, earnings per share 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)	-5.10
Wayfair	$12.46 billion	1.18	-$313.00 million	($2.46)	-45.45

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.

Volatility and Risk

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.

Institutional and Insider Ownership

70.4% of Brilliant Earth Group shares are owned by institutional investors. Comparatively, 89.7% of Wayfair shares are owned by institutional investors. 83.2% of Brilliant Earth Group shares are owned by company insiders. Comparatively, 18.4% of Wayfair shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Brilliant Earth Group and Wayfair, as reported by MarketBeat.

	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 17.40%. Wayfair has a consensus price target of $120.93, suggesting a potential upside of 8.15%. Given Brilliant Earth Group’s higher probable upside, equities analysts plainly believe Brilliant Earth Group is more favorable than Wayfair.

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%

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.