Honest (NASDAQ:HNST – Get Free Report) and Yatsen (NYSE:YSG – Get Free Report) are both small-cap consumer staples companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, risk, valuation and profitability.
Profitability
This table compares Honest and Yatsen’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Honest | -3.56% | 4.31% | 3.33% |
| Yatsen | -4.63% | -7.26% | -5.42% |
Analyst Ratings
This is a summary of current recommendations for Honest and Yatsen, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Honest | 2 | 4 | 2 | 1 | 2.22 |
| Yatsen | 1 | 0 | 0 | 0 | 1.00 |
Risk and Volatility
Honest has a beta of 2.24, indicating that its share price is 124% more volatile than the S&P 500. Comparatively, Yatsen has a beta of -1.54, indicating that its share price is 254% less volatile than the S&P 500.
Earnings & Valuation
This table compares Honest and Yatsen”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Honest | $371.32 million | 1.58 | -$15.69 million | ($0.11) | -48.45 |
| Yatsen | $614.62 million | 0.38 | -$11.56 million | ($0.32) | -7.86 |
Yatsen has higher revenue and earnings than Honest. Honest is trading at a lower price-to-earnings ratio than Yatsen, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
45.5% of Honest shares are owned by institutional investors. 9.4% of Honest shares are owned by company insiders. Comparatively, 29.0% of Yatsen shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
Honest beats Yatsen on 11 of the 15 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 Yatsen
Yatsen Holding Limited, together with its subsidiaries, engages in the development and sale of beauty products under the Perfect Diary, Little Ondine, Pink Bear, Abby’s Choice, GalÃnic, DR.WU, Eve Lom, and EANTiM brands in the People’s Republic of China. The company offers color cosmetics for lips, eyes, and face; skin care products, including face serums and creams, eye creams, masks, toners, makeup removers, cleansers, ampoules, and anti-acne patches; and beauty tools and kits, sunscreen products, and beauty devices. It sells its products through stores and online channel. The company was formerly known as Mangrove Bay Ecommerce Holding (Cayman) and changed its name to Yatsen Holding Limited in January 2019. Yatsen Holding Limited was founded in 2016 and is headquartered in Guangzhou, China.
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