Dogness (International) (NASDAQ:DOGZ) and Honest (NASDAQ:HNST) Critical Comparison

Dogness (International) (NASDAQ:DOGZ) and Honest (NASDAQ:HNST) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, institutional ownership, earnings, valuation, risk and analyst recommendations.

Risk and Volatility

Dogness (International) has a beta of 2.59, indicating that its stock price is 159% more volatile than the S&P 500. Comparatively, Honest has a beta of 2.32, indicating that its stock price is 132% more volatile than the S&P 500.

Insider & Institutional Ownership

5.1% of Dogness (International) shares are held by institutional investors. Comparatively, 45.5% of Honest shares are held by institutional investors. 31.2% of Dogness (International) shares are held by company insiders. Comparatively, 8.9% of Honest shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Dogness (International) and Honest’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dogness (International)	N/A	N/A	N/A
Honest	1.66%	3.84%	2.67%

Analyst Ratings

This is a summary of recent ratings for Dogness (International) and Honest, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dogness (International)	0	0	0	0	0.00
Honest	0	4	3	0	2.43

Honest has a consensus price target of $6.96, indicating a potential upside of 83.60%. Given Honest’s stronger consensus rating and higher probable upside, analysts clearly believe Honest is more favorable than Dogness (International).

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dogness (International)	$14.85 million	11.67	-$6.06 million	N/A	N/A
Honest	$378.34 million	1.11	-$6.12 million	$0.05	75.80

Dogness (International) has higher earnings, but lower revenue than Honest.

Summary

Honest beats Dogness (International) on 8 of the 12 factors compared between the two stocks.

About Dogness (International)

Dogness (International) Corporation, through its subsidiaries, designs, manufactures, and sells fashionable products for dogs and cats worldwide. The company provides pet leashes, pet collars, pet harnesses, and retractable leashes, as well as lanyards; gift suspenders, pet belt ribbons, laces, elastic belts, computer jacquard ribbons, and high-grade textile laces; mouth covers and pet charms; climbing hooks; and intelligent pet products, such as app-controlled pet feeders, pet water fountains, and smart pet toys, as well as pet shampoos. It also offers ribbon dyeing service and pet grooming services. It offers its products to wholesalers and retailers. The company was founded in 2003 and is headquartered in Dongguan, the People's Republic of China.

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.