Honest (NASDAQ:HNST) & Real Brands (OTCMKTS:RLBD) Head to Head Survey

Honest (NASDAQ:HNST) and Real Brands (OTCMKTS:RLBD) 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 dividends, valuation, profitability, earnings, institutional ownership, analyst recommendations and risk.

Valuation and Earnings

This table compares Honest and Real Brands”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Honest	$378.34 million	0.63	-$6.12 million	$0.06	35.67
Real Brands	$60,000.00	0.00	-$1.33 million	N/A	N/A

Real Brands has lower revenue, but higher earnings than Honest.

Volatility and Risk

Honest has a beta of 2.3, suggesting that its share price is 130% more volatile than the S&P 500. Comparatively, Real Brands has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Honest and Real Brands, as reported by MarketBeat.com.

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

Honest currently has a consensus target price of $3.00, indicating a potential upside of 40.19%. Given Honest’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Honest is more favorable than Real Brands.

Profitability

This table compares Honest and Real Brands’ net margins, return on equity and return on assets.

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

Insider and Institutional Ownership

45.5% of Honest shares are held by institutional investors. 8.9% of Honest shares are held by company insiders. Comparatively, 40.2% of Real Brands shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Honest beats Real Brands on 9 of the 11 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 Real Brands

Real Brands, Inc. operates in the hemp-derived cannabinol (CBD) market. It engages in the extraction of CBD oil/isolate; wholesale of CBD oils and isolate; and production and sale of hemp-derived CBD products, celebrity brands, and white label products. The company was founded in 2011 and is headquartered in North Providence, Rhode Island.