Lithia Motors (NYSE:LAD) and Brilliant Earth Group (NASDAQ:BRLT) Head to Head Comparison

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

Analyst Recommendations

This is a summary of recent ratings for Brilliant Earth Group and Lithia Motors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brilliant Earth Group	1	7	0	0	1.88
Lithia Motors	0	6	6	0	2.50

Brilliant Earth Group currently has a consensus target price of $1.74, suggesting a potential upside of 14.31%. Lithia Motors has a consensus target price of $402.60, suggesting a potential upside of 34.23%. Given Lithia Motors’ stronger consensus rating and higher probable upside, analysts clearly believe Lithia Motors is more favorable than Brilliant Earth Group.

Valuation and Earnings

This table compares Brilliant Earth Group and Lithia Motors”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brilliant Earth Group	$437.48 million	0.35	-$3.63 million	($0.29)	-5.24
Lithia Motors	$37.63 billion	0.18	$819.60 million	$30.15	9.95

Lithia Motors has higher revenue and earnings than Brilliant Earth Group. Brilliant Earth Group is trading at a lower price-to-earnings ratio than Lithia Motors, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

70.4% of Brilliant Earth Group shares are owned by institutional investors. 83.2% of Brilliant Earth Group shares are owned by insiders. Comparatively, 1.1% of Lithia Motors shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Brilliant Earth Group has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500. Comparatively, Lithia Motors has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500.

Profitability

This table compares Brilliant Earth Group and Lithia Motors’ 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%
Lithia Motors	1.88%	12.16%	3.14%

Summary

Lithia Motors beats Brilliant Earth Group on 10 of the 14 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 Lithia Motors

Lithia Motors, Inc. operates as an automotive retailer worldwide. It operates in two segments, Vehicle Operations and Financing Operations. The company’s Vehicle Operations segment sells new and used vehicles; provides parts, repair, and maintenance services; vehicle finance; and insurance products. Its Financing Operations segment provides financing to customers buying and leasing retail vehicles. The company sells its products and services through the Driveway and Greencars brand names through a network of locations, e-commerce platforms, and captive finance solutions. Lithia Motors, Inc. was founded in 1946 and is headquartered in Medford, Oregon.