Reviewing Honest (HNST) and Its Competitors

Honest (NASDAQ:HNSTGet Rating) is one of 49 public companies in the “Catalog & mail-order houses” industry, but how does it weigh in compared to its rivals? We will compare Honest to related businesses based on the strength of its analyst recommendations, profitability, valuation, risk, institutional ownership, earnings and dividends.

Insider and Institutional Ownership

69.2% of Honest shares are held by institutional investors. Comparatively, 64.0% of shares of all “Catalog & mail-order houses” companies are held by institutional investors. 29.0% of shares of all “Catalog & mail-order houses” companies are held by 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.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Honest and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Honest 1 3 5 0 2.44
Honest Competitors 290 1258 3358 63 2.64

Honest currently has a consensus price target of $9.78, suggesting a potential upside of 116.40%. As a group, “Catalog & mail-order houses” companies have a potential upside of 42.61%. Given Honest’s higher possible upside, analysts plainly believe Honest is more favorable than its rivals.

Profitability

This table compares Honest and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Honest -12.14% -51.77% -14.61%
Honest Competitors -8.24% -24.41% -3.80%

Valuation & Earnings

This table compares Honest and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Honest $318.64 million -$38.68 million -9.83
Honest Competitors $15.72 billion $855.51 million -8.25

Honest’s rivals have higher revenue and earnings than Honest. Honest is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Honest rivals beat Honest on 10 of the 12 factors compared.

Honest Company Profile (Get Rating)

The Honest Company, Inc. manufactures and sells diapers and wipes, skin and personal care, and household and wellness products. The company also offers baby clothing and nursery bedding products. It sells its products through digital and retail sales channels, such as its website and third-party ecommerce sites, as well as brick and mortar retailers. The company was incorporated in 2012 and is headquartered in Los Angeles, California.

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