Honest (NASDAQ:HNST) & Hour Loop (NASDAQ:HOUR) Critical Contrast

Honest (NASDAQ:HNSTGet Rating) and Hour Loop (NASDAQ:HOURGet Rating) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
Honest -15.94% -27.61% -18.07%
Hour Loop N/A N/A N/A

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Honest and Hour Loop, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Honest 1 4 2 0 2.14
Hour Loop 0 0 0 0 N/A

Honest currently has a consensus target price of $9.16, indicating a potential upside of 155.76%. Given Honest’s higher probable upside, research analysts plainly believe Honest is more favorable than Hour Loop.

Institutional & Insider Ownership

76.6% of Honest shares are held by institutional investors. 26.2% of Honest shares are held by company insiders. Comparatively, 95.1% of Hour Loop shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Honest and Hour Loop’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Honest $318.64 million 1.04 -$38.68 million ($0.49) -7.31
Hour Loop $62.79 million 1.95 $4.78 million N/A N/A

Hour Loop has lower revenue, but higher earnings than Honest.

Summary

Hour Loop beats Honest on 6 of the 10 factors compared between the two stocks.

About Honest

(Get Rating)

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 Hour Loop

(Get Rating)

Hour Loop, Inc., an online retailer, engages in e-commerce retailing in the United States. The company sells home/garden d├ęcor, toys, kitchenware, apparel, and electronics products. It sells its products through hourloop.com, amazon.com, and walmart.com. Hour Loop, Inc. was founded in 2013 and is headquartered in Redmond, Washington.

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