Reviewing Honest (NASDAQ:HNST) and Bon Natural Life (NASDAQ:BON)

Honest (NASDAQ:HNST) and Bon Natural Life (NASDAQ:BON) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, profitability and dividends.

Risk & Volatility

Honest has a beta of 2.13, suggesting that its stock price is 113% more volatile than the S&P 500. Comparatively, Bon Natural Life has a beta of -0.17, suggesting that its stock price is 117% less volatile than the S&P 500.

Insider and Institutional Ownership

45.5% of Honest shares are held by institutional investors. Comparatively, 0.6% of Bon Natural Life shares are held by institutional investors. 9.4% of Honest shares are held by company insiders. Comparatively, 26.5% of Bon Natural Life shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Honest and Bon Natural Life’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Honest	-5.39%	3.52%	2.71%
Bon Natural Life	N/A	N/A	N/A

Earnings & Valuation

This table compares Honest and Bon Natural Life”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Honest	$371.32 million	1.06	-$15.69 million	($0.17)	-21.06
Bon Natural Life	$18.67 million	0.57	-$2.00 million	N/A	N/A

Bon Natural Life has lower revenue, but higher earnings than Honest.

Analyst Ratings

This is a summary of recent recommendations and price targets for Honest and Bon Natural Life, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Honest	2	4	2	0	2.00
Bon Natural Life	1	0	0	0	1.00

Honest presently has a consensus target price of $3.47, indicating a potential downside of 3.17%. Given Honest’s stronger consensus rating and higher possible upside, analysts clearly believe Honest is more favorable than Bon Natural Life.

Summary

Honest beats Bon Natural Life on 9 of the 12 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 Bon Natural Life

Bon Natural Life Limited, together with its subsidiaries, engages in the research and development, manufacture, and sale of functional active ingredients extracted from natural herb plants in the People’s Republic of China and internationally. The company provides personal care ingredients, such as plant extracted fragrance compounds to perfume and fragrance manufacturers; natural health supplements comprising powder drinks and bioactive food ingredient products primarily used as food additives; and nutritional supplements. Its products are principally used by manufacturer customers in the functional food, personal care, cosmetic, and pharmaceutical industries. The company was founded in 2006 and is headquartered in Grand Cayman, the Cayman Islands.