Brilliant Earth Group (NASDAQ:BRLT) versus Warby Parker (NYSE:WRBY) Financial Contrast

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

Volatility & Risk

Warby Parker has a beta of 1.89, meaning that its stock price is 89% more volatile than the S&P 500. Comparatively, Brilliant Earth Group has a beta of 1.42, meaning that its stock price is 42% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Warby Parker and Brilliant Earth Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Warby Parker	0	4	6	0	2.60
Brilliant Earth Group	1	7	0	0	1.88

Warby Parker currently has a consensus price target of $30.00, suggesting a potential upside of 16.95%. Brilliant Earth Group has a consensus price target of $1.74, suggesting a potential upside of 13.56%. Given Warby Parker’s stronger consensus rating and higher possible upside, research analysts plainly believe Warby Parker is more favorable than Brilliant Earth Group.

Valuation and Earnings

This table compares Warby Parker and Brilliant Earth Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Warby Parker	$871.91 million	3.18	$1.64 million	$0.07	366.44
Brilliant Earth Group	$437.48 million	0.36	-$3.63 million	($0.29)	-5.28

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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Warby Parker	0.85%	3.36%	1.72%
Brilliant Earth Group	-0.66%	-15.48%	-5.99%

Institutional and Insider Ownership

93.2% of Warby Parker shares are held by institutional investors. Comparatively, 70.4% of Brilliant Earth Group shares are held by institutional investors. 16.8% of Warby Parker 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 endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Warby Parker beats Brilliant Earth Group on 13 of the 14 factors compared between the two stocks.

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.

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.