Analyzing Real Brands (OTCMKTS:RLBD) & Honest (NASDAQ:HNST)

Honest (NASDAQ:HNST) and Real Brands (OTCMKTS:RLBD) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, profitability, analyst recommendations, risk and valuation.

Volatility & Risk

Honest has a beta of 2.3, indicating that its share price is 130% more volatile than the S&P 500. Comparatively, Real Brands has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500.

Insider & Institutional Ownership

45.5% of Honest shares are owned by institutional investors. 8.9% of Honest shares are owned by company insiders. Comparatively, 40.2% of Real Brands shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Honest	$378.34 million	0.64	-$6.12 million	$0.06	35.92
Real Brands	$60,000.00	0.00	-$1.33 million	N/A	N/A

Real Brands has lower revenue, but higher earnings than Honest.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Honest and Real Brands, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Honest	2	4	1	0	1.86
Real Brands	0	0	0	0	0.00

Honest presently has a consensus price target of $3.00, indicating a potential upside of 39.21%. Given Honest’s stronger consensus rating and higher possible upside, research analysts plainly believe Honest is more favorable than Real Brands.

Profitability

This table compares Honest and Real Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Honest	1.85%	3.86%	2.82%
Real Brands	N/A	N/A	N/A

Summary

Honest beats Real Brands on 9 of the 11 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 Real Brands

Real Brands, Inc. operates in the hemp-derived cannabinol (CBD) market. It engages in the extraction of CBD oil/isolate; wholesale of CBD oils and isolate; and production and sale of hemp-derived CBD products, celebrity brands, and white label products. The company was founded in 2011 and is headquartered in North Providence, Rhode Island.