Natural Health Trends (NASDAQ:NHTC – Get Free Report) and Honest (NASDAQ:HNST – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, analyst recommendations, risk, dividends and valuation.
Valuation and Earnings
This table compares Natural Health Trends and Honest”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Natural Health Trends | $42.09 million | 1.23 | $570,000.00 | $0.03 | 150.33 |
| Honest | $378.34 million | 1.05 | -$6.12 million | $0.05 | 71.20 |
Profitability
This table compares Natural Health Trends and Honest’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Natural Health Trends | 0.83% | 1.09% | 0.66% |
| Honest | 1.66% | 3.84% | 2.67% |
Volatility & Risk
Natural Health Trends has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500. Comparatively, Honest has a beta of 2.29, meaning that its stock price is 129% more volatile than the S&P 500.
Insider & Institutional Ownership
10.1% of Natural Health Trends shares are owned by institutional investors. Comparatively, 45.5% of Honest shares are owned by institutional investors. 9.6% of Natural Health Trends shares are owned by company insiders. Comparatively, 8.9% of Honest shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of current ratings and target prices for Natural Health Trends and Honest, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Natural Health Trends | 1 | 0 | 0 | 0 | 1.00 |
| Honest | 0 | 4 | 3 | 1 | 2.63 |
Honest has a consensus target price of $6.96, suggesting a potential upside of 95.46%. Given Honest’s stronger consensus rating and higher possible upside, analysts plainly believe Honest is more favorable than Natural Health Trends.
Summary
Honest beats Natural Health Trends on 11 of the 15 factors compared between the two stocks.
About Natural Health Trends
Natural Health Trends Corp., a direct-selling and e-commerce company, provides personal care, wellness, and lifestyle products under the NHT Global brand. The company offers wellness products, including liquid, encapsulated, tableted and powder dietary and nutritional supplements, vitamins, and minerals; and herbal products comprising herbal supplements. It also provides beauty products, such as age-defying and hydrating cleansers, creams, lotions, serums, and toners; and lifestyle products, which include weight management and energy enhancing supplements, as well as topical gels. In addition, the company offers home appliances; and daily products, such as oral care, hair care, and body care. It sells its products directly to consumers, as well as through an e-commerce retail platform in the United States, Canada, Cayman Islands, Mexico, Peru, Hong Kong, Taiwan, China, Singapore, Malaysia, Thailand, South Korea, Japan, India, Russia, Kazakhstan, and Europe. The company was formerly known as Florida Institute of Massage Therapy, Inc. and changed its name to Natural Health Trends Corp. in June 1993. Natural Health Trends Corp. was incorporated in 1988 and is headquartered in Tsim Sha Tsui, Hong Kong.
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.
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