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

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

Profitability

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

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

Institutional and Insider Ownership

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

Risk & Volatility

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

Analyst Recommendations

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

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

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

Valuation & Earnings

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

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

HempAmericana has higher earnings, but lower revenue than Honest.

Summary

Honest beats HempAmericana on 10 of the 10 factors compared between the two stocks.

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.

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.