Honest (NASDAQ:HNST – Get Free Report) and Beyond (NYSE:BYON – Get Free Report) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, risk, earnings and dividends.
Institutional & Insider Ownership
45.5% of Honest shares are held by institutional investors. Comparatively, 76.3% of Beyond shares are held by institutional investors. 8.6% of Honest shares are held by insiders. Comparatively, 1.2% of Beyond shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Honest and Beyond, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Honest | 0 | 3 | 2 | 0 | 2.40 |
| Beyond | 0 | 2 | 4 | 0 | 2.67 |
Profitability
This table compares Honest and Beyond’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Honest | -11.39% | -30.36% | -18.86% |
| Beyond | -19.72% | -16.92% | -11.38% |
Valuation & Earnings
This table compares Honest and Beyond’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Honest | $344.36 million | 0.78 | -$39.24 million | ($0.42) | -6.62 |
| Beyond | $1.56 billion | 0.48 | -$307.84 million | ($6.80) | -2.43 |
Honest has higher earnings, but lower revenue than Beyond. Honest is trading at a lower price-to-earnings ratio than Beyond, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Honest has a beta of 1.91, suggesting that its share price is 91% more volatile than the S&P 500. Comparatively, Beyond has a beta of 3.92, suggesting that its share price is 292% more volatile than the S&P 500.
Summary
Beyond beats Honest on 9 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 Beyond
Beyond, Inc. operates as an online retailer of furniture and home furnishings products in the United States and Canada. The company offers furniture, bedding and bath, patio and outdoor gear, area rugs, tabletop and cookware, décor, storage and organization, small appliances, home improvement, and other products under the Bed Bath & Beyond brand. The company provides its products and services through its e-commerce platform accessible through its mobile application, which includes bedbathandbeyond.com, bedbathandbeyond.ca, and overstockgovernment.com. It also offers businesses advertising products or services on its website; Marketplace, a service that allows its partners to sell their products through third party sites; product sales to international customers using third party logistics providers; and Supplier Oasis, a singular integration point that enables partners to manage their products, inventory, and sales channels, as well as access multi-channel fulfillment services through its distribution network. The company was formerly known as Overstock.com, Inc. and changed its name to Beyond, Inc. in November 2023. Beyond, Inc. was founded in 1997 and is headquartered in Midvale, Utah.
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