Head-To-Head Comparison: Duluth (NASDAQ:DLTH) versus Brilliant Earth Group (NASDAQ:BRLT)

Brilliant Earth Group (NASDAQ:BRLT) and Duluth (NASDAQ:DLTH) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Profitability

This table compares Brilliant Earth Group and Duluth’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%
Duluth	-2.00%	-3.69%	-1.42%

Valuation and Earnings

This table compares Brilliant Earth Group and Duluth”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	0.30	-$3.63 million	($0.29)	-4.41
Duluth	$565.18 million	0.25	-$16.39 million	($0.32)	-11.81

Brilliant Earth Group has higher earnings, but lower revenue than Duluth. Duluth 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.

Institutional and Insider Ownership

70.4% of Brilliant Earth Group shares are owned by institutional investors. Comparatively, 24.4% of Duluth shares are owned by institutional investors. 83.2% of Brilliant Earth Group shares are owned by company insiders. Comparatively, 40.4% of Duluth shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Brilliant Earth Group has a beta of 1.38, indicating that its stock price is 38% more volatile than the S&P 500. Comparatively, Duluth has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Brilliant Earth Group and Duluth, 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
Duluth	1	1	1	1	2.50

Brilliant Earth Group presently has a consensus price target of $1.74, suggesting a potential upside of 35.74%. Duluth has a consensus price target of $5.00, suggesting a potential upside of 32.28%. Given Brilliant Earth Group’s higher probable upside, equities research analysts clearly believe Brilliant Earth Group is more favorable than Duluth.

Summary

Brilliant Earth Group beats Duluth on 8 of the 15 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 Duluth

Duluth Holdings Inc. sells casual wear, workwear, and accessories for men and women under the Duluth Trading brand in the United States. It provides shirts, pants, underwear, tanks, outerwear, footwear, accessories, and hard goods. The company offers its products under various trademarks, trade names, and service marks, including Alaskan Hardgear, Armachillo, Ballroom, Bucket Master, Cab Commander, Crouch Gusset, Dry on the Fly, Duluth Trading Co, Duluthflex, Fire Hose, Longtail T, No-Yank, No Polo Shirt, Wild Boar Mocs, and Buck Naked. Duluth Holdings Inc. markets its products through its Website, catalogs, and retail stores. As of May 17, 2018, it operated 36 retail stores. The company was formerly known as GEMPLER'S, Inc. Duluth Holdings Inc. was founded in 1989 and is headquartered in Belleville, Wisconsin.