CarMax (NYSE:KMX – Get Free Report) and Brilliant Earth Group (NASDAQ:BRLT – Get Free Report) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their earnings, valuation, risk, institutional ownership, dividends, profitability and analyst recommendations.
Earnings & Valuation
This table compares CarMax and Brilliant Earth Group”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CarMax | $25.88 billion | 0.28 | $247.29 million | $2.05 | 25.10 |
| Brilliant Earth Group | $437.48 million | 0.34 | -$3.63 million | ($0.29) | -5.00 |
CarMax has higher revenue and earnings than Brilliant Earth Group. Brilliant Earth Group is trading at a lower price-to-earnings ratio than CarMax, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
CarMax has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500. Comparatively, Brilliant Earth Group has a beta of 1.47, suggesting that its stock price is 47% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and recommmendations for CarMax and Brilliant Earth Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CarMax | 1 | 12 | 3 | 1 | 2.24 |
| Brilliant Earth Group | 1 | 7 | 0 | 0 | 1.88 |
CarMax currently has a consensus target price of $58.00, indicating a potential upside of 12.70%. Brilliant Earth Group has a consensus target price of $1.62, indicating a potential upside of 12.07%. Given CarMax’s stronger consensus rating and higher probable upside, equities research analysts clearly believe CarMax is more favorable than Brilliant Earth Group.
Institutional & Insider Ownership
70.4% of Brilliant Earth Group shares are owned by institutional investors. 1.0% of CarMax shares are owned by company insiders. Comparatively, 83.2% of Brilliant Earth Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Profitability
This table compares CarMax and Brilliant Earth Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CarMax | 1.06% | 7.76% | 1.81% |
| Brilliant Earth Group | -0.59% | -13.09% | -5.05% |
Summary
CarMax beats Brilliant Earth Group on 11 of the 15 factors compared between the two stocks.
About CarMax
CarMax, Inc., through its subsidiaries, operates as a retailer of used vehicles and related products in the United States. It operates in two segments: CarMax Sales Operations and CarMax Auto Finance. The CarMax Sales Operations segment offers customers a range of makes and models of used vehicles, including domestic, imported, and luxury vehicles, as well as hybrid and electric vehicles; used vehicle auctions; extended protection plans to customers at the time of sale; and reconditioning and vehicle repair services. The CarMax Auto Finance segment provides financing alternatives for retail customers across a range of credit spectrum and arrangements with various financial institutions. The company was founded in 1993 and is based in Richmond, Virginia.
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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