Analyzing Honest (NASDAQ:HNST) and CECONOMY (OTCMKTS:MTTRY)

CECONOMY (OTCMKTS:MTTRY) and Honest (NASDAQ:HNST) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, analyst recommendations, valuation and profitability.

Analyst Ratings

This is a summary of current ratings and price targets for CECONOMY and Honest, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CECONOMY	0	0	0	1	4.00
Honest	0	3	3	0	2.50

Honest has a consensus price target of $6.9583, indicating a potential upside of 81.68%. Given Honest’s higher probable upside, analysts plainly believe Honest is more favorable than CECONOMY.

Risk & Volatility

CECONOMY has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500. Comparatively, Honest has a beta of 2.34, indicating that its stock price is 134% more volatile than the S&P 500.

Profitability

This table compares CECONOMY and Honest’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CECONOMY	0.71%	37.53%	2.04%
Honest	1.66%	3.84%	2.67%

Valuation and Earnings

This table compares CECONOMY and Honest”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CECONOMY	$24.34 billion	N/A	$82.44 million	$0.07	14.14
Honest	$378.34 million	1.13	-$6.12 million	$0.05	76.60

CECONOMY has higher revenue and earnings than Honest. CECONOMY is trading at a lower price-to-earnings ratio than Honest, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

45.5% of Honest shares are held by institutional investors. 8.9% of Honest shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Honest beats CECONOMY on 8 of the 14 factors compared between the two stocks.

About CECONOMY

Ceconomy AG, together with its subsidiaries, engages in the consumer electronics retail business. It operates stores under the MediaMarkt and Saturn brands. The company offers professional assistance for the installation, connection, and troubleshooting of electronic devices at home under the Deutsche Technikberatung brand. It operates in Germany, Austria, Switzerland, and Hungary, as well as in Western, Southern, and Eastern Europe. Ceconomy AG is based in Düsseldorf, Germany.

About Honest

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.