Head to Head Comparison: Brilliant Earth Group (NASDAQ:BRLT) vs. Build-A-Bear Workshop (NYSE:BBW)

Build-A-Bear Workshop (NYSE:BBW) and Brilliant Earth Group (NASDAQ:BRLT) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, earnings and analyst recommendations.

Valuation & Earnings

This table compares Build-A-Bear Workshop and Brilliant Earth Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Build-A-Bear Workshop	$529.83 million	0.64	$52.20 million	$4.03	6.83
Brilliant Earth Group	$437.48 million	0.33	-$3.63 million	($0.29)	-4.90

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Build-A-Bear Workshop and Brilliant Earth Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Build-A-Bear Workshop	1	1	2	0	2.25
Brilliant Earth Group	1	7	0	0	1.88

Build-A-Bear Workshop presently has a consensus price target of $53.50, indicating a potential upside of 94.38%. Brilliant Earth Group has a consensus price target of $1.74, indicating a potential upside of 22.36%. Given Build-A-Bear Workshop’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Build-A-Bear Workshop is more favorable than Brilliant Earth Group.

Risk & Volatility

Build-A-Bear Workshop has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500. Comparatively, Brilliant Earth Group has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500.

Institutional & Insider Ownership

79.3% of Build-A-Bear Workshop shares are held by institutional investors. Comparatively, 70.4% of Brilliant Earth Group shares are held by institutional investors. 4.0% of Build-A-Bear Workshop shares are held by insiders. Comparatively, 83.2% of Brilliant Earth Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Build-A-Bear Workshop and Brilliant Earth Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Build-A-Bear Workshop	9.96%	29.66%	13.60%
Brilliant Earth Group	-0.66%	-15.48%	-5.99%

Summary

Build-A-Bear Workshop beats Brilliant Earth Group on 12 of the 14 factors compared between the two stocks.

About Build-A-Bear Workshop

Build-A-Bear Workshop, Inc. operates as a multi-channel retailer of plush animals and related products in the United States, Canada, the United Kingdom, Ireland, and internationally. The company operates through three segments: Direct-to-Consumer, Commercial, and International Franchising. Its merchandise comprises various styles of plush products to be stuffed, pre-stuffed plush products, and sounds and scents that can be added to the stuffed animals, as well as range of clothing, shoes and accessories, and other toy and novelty items, including family sleepwear. The company operates its stores under the Build-A-Bear Workshop brand name; and sells its products through its e-commerce sites and third-party marketplace sites. Build-A-Bear Workshop, Inc. was founded in 1997 and is headquartered in Saint Louis, Missouri.

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.