Wayfair (NYSE:W – Get Free Report) and Brilliant Earth Group (NASDAQ:BRLT – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Wayfair and Brilliant Earth Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Wayfair | 1 | 11 | 18 | 2 | 2.66 |
| Brilliant Earth Group | 1 | 7 | 0 | 0 | 1.88 |
Wayfair presently has a consensus price target of $120.93, indicating a potential upside of 12.01%. Brilliant Earth Group has a consensus price target of $1.74, indicating a potential upside of 19.42%. Given Brilliant Earth Group’s higher probable upside, analysts plainly believe Brilliant Earth Group is more favorable than Wayfair.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Wayfair | $12.46 billion | 1.14 | -$313.00 million | ($2.46) | -43.89 |
| Brilliant Earth Group | $437.48 million | 0.34 | -$3.63 million | ($0.29) | -5.02 |
Brilliant Earth Group has lower revenue, but higher earnings 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.
Profitability
This table compares Wayfair and Brilliant Earth Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Wayfair | -2.49% | -3.40% | 3.06% |
| Brilliant Earth Group | -0.66% | -15.48% | -5.99% |
Insider and Institutional Ownership
89.7% of Wayfair shares are owned by institutional investors. Comparatively, 70.4% of Brilliant Earth Group shares are owned by institutional investors. 18.4% of Wayfair 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 endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Risk and Volatility
Wayfair has a beta of 3.02, meaning that its stock price is 202% 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.
Summary
Wayfair beats Brilliant Earth Group on 10 of the 15 factors compared between the two stocks.
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.
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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