AutoNation (NYSE:AN – Get Free Report) and Brilliant Earth Group (NASDAQ:BRLT – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.
Profitability
This table compares AutoNation and Brilliant Earth Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AutoNation | 2.82% | 31.24% | 4.97% |
| Brilliant Earth Group | -0.66% | -15.48% | -5.99% |
Institutional and Insider Ownership
94.6% of AutoNation shares are held by institutional investors. Comparatively, 70.4% of Brilliant Earth Group shares are held by institutional investors. 1.4% of AutoNation shares are held by company insiders. Comparatively, 83.2% of Brilliant Earth Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| AutoNation | $27.63 billion | 0.25 | $649.10 million | $21.59 | 9.60 |
| Brilliant Earth Group | $437.48 million | 0.33 | -$3.63 million | ($0.29) | -4.95 |
AutoNation has higher revenue and earnings than Brilliant Earth Group. Brilliant Earth Group is trading at a lower price-to-earnings ratio than AutoNation, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
AutoNation has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500. Comparatively, Brilliant Earth Group has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and price targets for AutoNation and Brilliant Earth Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AutoNation | 0 | 2 | 10 | 0 | 2.83 |
| Brilliant Earth Group | 1 | 7 | 0 | 0 | 1.88 |
AutoNation currently has a consensus target price of $250.00, suggesting a potential upside of 20.66%. Brilliant Earth Group has a consensus target price of $1.74, suggesting a potential upside of 21.08%. Given Brilliant Earth Group’s higher probable upside, analysts clearly believe Brilliant Earth Group is more favorable than AutoNation.
Summary
AutoNation beats Brilliant Earth Group on 10 of the 14 factors compared between the two stocks.
About AutoNation
AutoNation, Inc., through its subsidiaries, operates as an automotive retailer in the United States. The company operates through three segments: Domestic, Import, and Premium Luxury. It offers a range of automotive products and services, including new and used vehicles; and parts and services, such as automotive repair and maintenance, and wholesale parts and collision services. The company also provides automotive finance and insurance products comprising vehicle services and other protection products; and indirect financing for vehicles, as well as arranges finance for vehicle purchases through third-party finance sources. It owns and operates new vehicle franchises from stores located primarily in metropolitan markets in the Sunbelt region, as well as AutoNation-branded collision centers, AutoNation USA used vehicle stores, AutoNation-branded automotive auction operations, and parts distribution centers. The company was formerly known as Republic Industries, Inc. and changed its name to AutoNation, Inc. in 1999. AutoNation, Inc. was incorporated in 1980 and is headquartered in Fort Lauderdale, Florida.
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.
Receive News & Ratings for AutoNation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for AutoNation and related companies with MarketBeat.com's FREE daily email newsletter.
