Comparing HempAmericana (OTCMKTS:HMPQ) and Honest (NASDAQ:HNST)

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

Earnings and Valuation

This table compares Honest and HempAmericana”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Honest	$378.34 million	0.74	-$6.12 million	$0.06	41.50
HempAmericana	N/A	N/A	N/A	N/A	N/A

HempAmericana has lower revenue, but higher earnings than Honest.

Insider & 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 large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Honest	1.85%	3.86%	2.82%
HempAmericana	N/A	N/A	N/A

Volatility & Risk

Honest has a beta of 2.3, indicating that its share price is 130% more volatile than the S&P 500. Comparatively, HempAmericana has a beta of -0.22, indicating that its share price is 122% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Honest and HempAmericana, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Honest	2	4	1	0	1.86
HempAmericana	0	0	0	0	0.00

Honest presently has a consensus price target of $3.00, indicating a potential upside of 20.48%. Given Honest’s stronger consensus rating and higher probable upside, analysts clearly believe Honest is more favorable than HempAmericana.

Summary

Honest beats HempAmericana on 10 of the 10 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 HempAmericana

HempAmericana, Inc. researches, develops, and sells products made of industrial hemp in the United States. It provides hemp-based concrete, hemp bags, hemp seeds for consumption, hemp clothing, and hemp rolling paper products. HempAmericana, Inc. was founded in 2014 and is based in New York, New York.