Real Brands (OTCMKTS:RLBD) versus Honest (NASDAQ:HNST) Head to Head Comparison

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Honest and Real Brands, as provided by MarketBeat.

	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 presently has a consensus target price of $3.00, indicating a potential upside of 40.85%. Given Honest’s stronger consensus rating and higher possible upside, analysts clearly believe Honest is more favorable than Real Brands.

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	35.50
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 0.9, suggesting that its share price is 10% less volatile than the S&P 500.

Insider & Institutional Ownership

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

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

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.