Brilliant Earth Group (NASDAQ:BRLT) versus Salvatore Ferragamo (OTCMKTS:SFRGY) Critical Contrast

Brilliant Earth Group (NASDAQ:BRLT) and Salvatore Ferragamo (OTCMKTS:SFRGY) are both consumer cyclical companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Insider & Institutional Ownership

70.4% of Brilliant Earth Group shares are held by institutional investors. 84.7% of Brilliant Earth Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Brilliant Earth Group and Salvatore Ferragamo”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brilliant Earth Group	$441.26 million	0.35	$580,000.00	$0.06	26.00
Salvatore Ferragamo	N/A	N/A	N/A	$0.44	8.25

Brilliant Earth Group has higher revenue and earnings than Salvatore Ferragamo. Salvatore Ferragamo 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.

Profitability

This table compares Brilliant Earth Group and Salvatore Ferragamo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brilliant Earth Group	0.57%	6.48%	2.36%
Salvatore Ferragamo	N/A	N/A	N/A

Analyst Ratings

This is a summary of current ratings and price targets for Brilliant Earth Group and Salvatore Ferragamo, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brilliant Earth Group	0	2	2	0	2.50
Salvatore Ferragamo	0	0	0	0	N/A

Brilliant Earth Group presently has a consensus target price of $3.00, suggesting a potential upside of 92.31%. Given Brilliant Earth Group’s higher possible upside, equities research analysts clearly believe Brilliant Earth Group is more favorable than Salvatore Ferragamo.

Summary

Brilliant Earth Group beats Salvatore Ferragamo on 9 of the 10 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 Salvatore Ferragamo

Salvatore Ferragamo S.p.A., through its subsidiaries, creates, produces, and sells luxury goods for men and women in Italy, rest of Europe, North America, Japan, the Asia Pacific, and Central and South America. It offers men’s and women’s footwear; leather goods, such as handbags, suitcases, belts, wallets, and other men’s and women’s leather accessories; and knitwear, clothes for formal occasions, sportswear, and leisure wear, as well as outerwear, such as husky jackets, ponchos, and leather garments. The company also provides silk accessories, including ties, foulards, scarves, etc.; home accessories comprising plaid throws, cushions, and beach towels; costume jewelry; and other accessories consisting of shawls and gloves. In addition, it develops and distributes perfumes and fragrances. Further, the company offers men’s and women’s sunglasses and prescription glasses; jewelry products; and watches. Additionally, it is also involved in the real estate management business. The company was formerly known as Salvatore Ferragamo Italia S.p.A. and changed its name to Salvatore Ferragamo S.p.A. in April 2011. The company was founded in 1927 and is headquartered in Florence, Italy. Salvatore Ferragamo S.p.A. is a subsidiary of Ferragamo Finanziaria S.p.A.