Analyzing Honest (NASDAQ:HNST) and RDE (NASDAQ:GIFT)

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

Valuation & Earnings

This table compares RDE and Honest”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RDE	$97.01 million	0.26	N/A	N/A	N/A
Honest	$344.36 million	1.80	-$39.24 million	($0.04)	-153.25

RDE has higher earnings, but lower revenue than Honest.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
RDE	-21.08%	-76.24%	-46.38%
Honest	-1.13%	-3.26%	-2.06%

Insider and Institutional Ownership

45.5% of Honest shares are held by institutional investors. 20.5% of RDE shares are held by company insiders. Comparatively, 8.6% of Honest 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.

Risk & Volatility

RDE has a beta of -0.73, indicating that its stock price is 173% less volatile than the S&P 500. Comparatively, Honest has a beta of 2.45, indicating that its stock price is 145% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for RDE and Honest, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RDE	0	0	0	0	0.00
Honest	0	3	4	1	2.75

Honest has a consensus price target of $6.93, indicating a potential upside of 13.03%. Given Honest’s stronger consensus rating and higher probable upside, analysts plainly believe Honest is more favorable than RDE.

Summary

Honest beats RDE on 11 of the 12 factors compared between the two stocks.

About RDE

RDE, Inc. owns and operates a restaurant deal space in the United States. The company operates Restaurant.com that connects digital consumers, businesses, and communities with dining and merchant deal options at approximately 182,500 restaurants and retailers to approximately 7.8 million customers. It sells discount certificates for restaurants, as well as complementary entertainment and travel offerings, and consumer products on behalf of third-party merchants. The company is based in Schaumburg, Illinois.

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.