Head-To-Head Analysis: Real Brands (OTCMKTS:RLBD) versus Honest (NASDAQ:HNST)

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Real Brands and Honest, as provided by MarketBeat.com.

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

Honest has a consensus target price of $3.00, suggesting a potential upside of 32.16%. Given Honest’s stronger consensus rating and higher probable upside, analysts clearly believe Honest is more favorable than Real Brands.

Risk and Volatility

Real Brands has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500. Comparatively, Honest has a beta of 2.3, meaning that its stock price is 130% more volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Real Brands	$60,000.00	0.00	-$1.33 million	N/A	N/A
Honest	$378.34 million	0.67	-$6.12 million	$0.06	37.83

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

Profitability

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

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

Insider & Institutional Ownership

45.5% of Honest shares are held by institutional investors. 40.2% of Real Brands shares are held by company insiders. Comparatively, 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 company will outperform the market over the long term.

Summary

Honest beats Real Brands on 9 of the 11 factors compared between the two stocks.

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.

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.