Honest (NASDAQ:HNST – Get Free Report) and Traeger (NYSE:COOK – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, risk, earnings, dividends, valuation, profitability and analyst recommendations.
Insider & Institutional Ownership
45.5% of Honest shares are held by institutional investors. Comparatively, 46.8% of Traeger shares are held by institutional investors. 8.9% of Honest shares are held by insiders. Comparatively, 14.7% of Traeger shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Honest and Traeger, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Honest | 0 | 4 | 3 | 0 | 2.43 |
| Traeger | 1 | 5 | 1 | 0 | 2.00 |
Volatility and Risk
Honest has a beta of 2.32, indicating that its share price is 132% more volatile than the S&P 500. Comparatively, Traeger has a beta of 1.44, indicating that its share price is 44% more volatile than the S&P 500.
Profitability
This table compares Honest and Traeger’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Honest | 1.66% | 3.84% | 2.67% |
| Traeger | -6.02% | -5.67% | -1.93% |
Earnings & Valuation
This table compares Honest and Traeger”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Honest | $378.34 million | 1.17 | -$6.12 million | $0.05 | 79.80 |
| Traeger | $604.07 million | 0.29 | -$34.01 million | ($0.27) | -4.76 |
Honest has higher earnings, but lower revenue than Traeger. Traeger is trading at a lower price-to-earnings ratio than Honest, indicating that it is currently the more affordable of the two stocks.
Summary
Honest beats Traeger on 11 of the 14 factors compared between the two stocks.
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.
About Traeger
Traeger, Inc., together with its subsidiaries, designs, sources, sells, and supports wood pellet fueled barbecue grills for retailers, distributors, and direct to consumers in the United States. Its wood pellet grills are internet of things devices that allow owners to program, monitor, and control their grill through its Traeger app. The company also produces a library of digital content, including instructional recipes and videos that demonstrate tips, tricks, and cooking techniques that empower Traeger owners to progress their cooking skills; and short- and long-form branded content highlighting stories, community members, and lifestyle content from the Traegerhood. In addition, it provides wood pellets that are used to fire the grills; rubs, spices, and sauces; accessories, such as pop-and-lock accessory rail covers, drip trays, bucket liners, storage bins, and shelves; tools to aid in meal prep, cooking, and cleanup, including pellet storage systems, cleaning solutions, barbecue tools, and MEATER smart thermometer; replacement parts; and apparel and merchandise, including t-shirts, hooded sweatshirts, and baseball hats. Traeger, Inc. was founded in 1987 and is headquartered in Salt Lake City, Utah.
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