Honest (NASDAQ:HNST – Get Free Report) and Natural Health Trends (NASDAQ:NHTC – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, valuation, risk, dividends, analyst recommendations and institutional ownership.
Insider and Institutional Ownership
45.5% of Honest shares are held by institutional investors. Comparatively, 10.1% of Natural Health Trends shares are held by institutional investors. 8.9% of Honest shares are held by company insiders. Comparatively, 9.6% of Natural Health Trends shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of recent recommendations for Honest and Natural Health Trends, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Honest | 0 | 4 | 3 | 1 | 2.63 |
| Natural Health Trends | 1 | 0 | 0 | 0 | 1.00 |
Profitability
This table compares Honest and Natural Health Trends’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Honest | 1.66% | 3.84% | 2.67% |
| Natural Health Trends | 0.83% | 1.09% | 0.66% |
Risk and Volatility
Honest has a beta of 2.29, indicating that its stock price is 129% more volatile than the S&P 500. Comparatively, Natural Health Trends has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500.
Valuation and Earnings
This table compares Honest and Natural Health Trends”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Honest | $378.34 million | 1.07 | -$6.12 million | $0.05 | 72.80 |
| Natural Health Trends | $42.96 million | 1.20 | $570,000.00 | $0.03 | 149.00 |
Natural Health Trends has lower revenue, but higher earnings than Honest. Honest is trading at a lower price-to-earnings ratio than Natural Health Trends, indicating that it is currently the more affordable of the two stocks.
Summary
Honest beats Natural Health Trends on 11 of the 15 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 Natural Health Trends
Natural Health Trends Corp., a direct-selling and e-commerce company, provides personal care, wellness, and lifestyle products under the NHT Global brand. The company offers wellness products, including liquid, encapsulated, tableted and powder dietary and nutritional supplements, vitamins, and minerals; and herbal products comprising herbal supplements. It also provides beauty products, such as age-defying and hydrating cleansers, creams, lotions, serums, and toners; and lifestyle products, which include weight management and energy enhancing supplements, as well as topical gels. In addition, the company offers home appliances; and daily products, such as oral care, hair care, and body care. It sells its products directly to consumers, as well as through an e-commerce retail platform in the United States, Canada, Cayman Islands, Mexico, Peru, Hong Kong, Taiwan, China, Singapore, Malaysia, Thailand, South Korea, Japan, India, Russia, Kazakhstan, and Europe. The company was formerly known as Florida Institute of Massage Therapy, Inc. and changed its name to Natural Health Trends Corp. in June 1993. Natural Health Trends Corp. was incorporated in 1988 and is headquartered in Tsim Sha Tsui, Hong Kong.
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