Honest (NASDAQ:HNST – Get Free Report) and Insynergy Products (OTCMKTS:STCB – Get Free Report) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, profitability, institutional ownership, risk, analyst recommendations, earnings and valuation.
Institutional and Insider Ownership
45.5% of Honest shares are held by institutional investors. 9.4% of Honest shares are held by insiders. Comparatively, 34.8% of Insynergy Products shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Honest and Insynergy Products”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Honest | $371.32 million | 1.04 | -$15.69 million | ($0.17) | -20.59 |
| Insynergy Products | $40.48 million | 0.58 | -$20.93 million | ($0.03) | -1.00 |
Honest has higher revenue and earnings than Insynergy Products. Honest is trading at a lower price-to-earnings ratio than Insynergy Products, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Honest has a beta of 2.15, indicating that its stock price is 115% more volatile than the S&P 500. Comparatively, Insynergy Products has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500.
Profitability
This table compares Honest and Insynergy Products’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Honest | -5.39% | 3.52% | 2.71% |
| Insynergy Products | -61.88% | -99.43% | -50.57% |
Analyst Recommendations
This is a breakdown of current ratings for Honest and Insynergy Products, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Honest | 2 | 4 | 2 | 0 | 2.00 |
| Insynergy Products | 0 | 0 | 0 | 0 | 0.00 |
Honest presently has a consensus target price of $3.47, indicating a potential downside of 0.95%. Given Honest’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Honest is more favorable than Insynergy Products.
Summary
Honest beats Insynergy Products on 11 of the 14 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 Insynergy Products
Starco Brands, Inc. markets consumer products through retail and online in the United States. It offers products in various categories, including household cleaning, DIY/Hardware, paints, coatings and adhesives, household, hair care, disinfectants, automotive, motorcycle, arts and crafts, personal care cosmetics, personal care FDA, sun care, food, cooking oils, beverages, and spirits and wine under the Winona, Whipshots, Skylar, Soylent, and Art of Sport brands. The company was formerly known as Insynergy Products, Inc. and changed its name to Starco Brands, Inc. in September 2017. Starco Brands, Inc. was incorporated in 2010 and is based in Santa Monica, California.
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