Contrasting Real Brands (OTCMKTS:RLBD) and Honest (NASDAQ:HNST)

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Honest and Real Brands, as provided 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 currently 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, analysts plainly believe Honest is more favorable than Real Brands.

Insider and Institutional Ownership

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

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

Volatility and 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.

Earnings and Valuation

This table compares Honest and Real Brands”s top-line revenue, earnings per share 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.

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.