Head to Head Contrast: AutoNation (NYSE:AN) and Brilliant Earth Group (NASDAQ:BRLT)

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

Volatility and Risk

Brilliant Earth Group has a beta of 1.42, suggesting that its stock price is 42% more volatile than the S&P 500. Comparatively, AutoNation has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500.

Valuation and Earnings

This table compares Brilliant Earth Group and AutoNation”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	0.33	-$3.63 million	($0.29)	-4.95
AutoNation	$27.63 billion	0.25	$649.10 million	$21.59	9.60

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.

Institutional and Insider Ownership

70.4% of Brilliant Earth Group shares are owned by institutional investors. Comparatively, 94.6% of AutoNation shares are owned by institutional investors. 83.2% of Brilliant Earth Group shares are owned by insiders. Comparatively, 1.4% of AutoNation shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Brilliant Earth Group and AutoNation’s 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%
AutoNation	2.82%	31.24%	4.97%

Analyst Recommendations

This is a summary of current recommendations and price targets for Brilliant Earth Group and AutoNation, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brilliant Earth Group	1	7	0	0	1.88
AutoNation	0	2	10	0	2.83

Brilliant Earth Group currently has a consensus price target of $1.74, suggesting a potential upside of 21.08%. AutoNation has a consensus price target of $250.00, suggesting a potential upside of 20.66%. Given Brilliant Earth Group’s higher possible upside, equities 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 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 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.