Luk Fook (OTCMKTS:LKFLF) and Brilliant Earth Group (NASDAQ:BRLT) Financial Analysis

Brilliant Earth Group (NASDAQ:BRLT) and Luk Fook (OTCMKTS:LKFLF) are both small-cap retail/wholesale companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, profitability, risk, analyst recommendations, dividends, earnings and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Brilliant Earth Group and Luk Fook, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brilliant Earth Group	1	3	0	0	1.75
Luk Fook	0	1	0	0	2.00

Brilliant Earth Group presently has a consensus target price of $1.80, indicating a potential downside of 14.69%. Given Brilliant Earth Group’s higher possible upside, research analysts clearly believe Brilliant Earth Group is more favorable than Luk Fook.

Risk and Volatility

Brilliant Earth Group has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500. Comparatively, Luk Fook has a beta of -0.34, suggesting that its share price is 134% less volatile than the S&P 500.

Insider & Institutional Ownership

70.4% of Brilliant Earth Group shares are owned by institutional investors. 84.5% of Brilliant Earth Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Brilliant Earth Group	0.44%	-1.57%	-0.61%
Luk Fook	N/A	N/A	N/A

Valuation and Earnings

This table compares Brilliant Earth Group and Luk Fook”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brilliant Earth Group	$422.16 million	0.50	$540,000.00	($0.03)	-70.33
Luk Fook	$1.53 billion	1.26	$163.93 million	N/A	N/A

Luk Fook has higher revenue and earnings than Brilliant Earth Group.

Summary

Luk Fook beats Brilliant Earth Group on 6 of the 11 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 Luk Fook

Luk Fook Holdings (International) Limited, an investment holding company, engages in sourcing, designing, wholesaling, trademark licensing, and retailing various gold and platinum jewelry, and gem-set jewelry products. It offers ring and pair rings, necklaces, pendants, earrings, bangles and bracelets, charms, figurines, accessories, and other products of various materials comprising diamond, gold, platinum, jadeite, gemstone, pearl, and silver materials. The company also provides authentication of gemstones; gold bullion trading services; and software development and services related to internet. In addition, it wholesales polished diamonds; offers trademark licensing, brand building, promotion, and quality examination services, as well as diamond subcontracting handling and diamonds custom export services; and engages in electronic retailing of gold and jewelry products. The company was founded in 1991 and is headquartered in Sha Tin, Hong Kong.