AutoNation (NYSE:AN) versus Brilliant Earth Group (NASDAQ:BRLT) Head to Head Comparison

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

Insider & Institutional 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 hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings for Brilliant Earth Group and AutoNation, as reported by MarketBeat.

	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 presently has a consensus price target of $1.74, suggesting a potential upside of 22.36%. AutoNation has a consensus price target of $250.00, suggesting a potential upside of 45.93%. Given AutoNation’s stronger consensus rating and higher possible upside, analysts plainly believe AutoNation is more favorable than Brilliant Earth Group.

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%

Volatility & Risk

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

Earnings and Valuation

This table compares Brilliant Earth Group and AutoNation”s gross 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)	-4.90
AutoNation	$27.63 billion	0.20	$649.10 million	$21.59	7.93

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.

Summary

AutoNation beats Brilliant Earth Group on 11 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.