Head-To-Head Comparison: Insynergy Products (OTCMKTS:STCB) and Honest (NASDAQ:HNST)

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Insynergy Products and Honest, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Insynergy Products	0	0	0	0	0.00
Honest	2	4	2	0	2.00

Honest has a consensus target price of $3.47, indicating a potential upside of 6.67%. Given Honest’s stronger consensus rating and higher probable upside, analysts clearly believe Honest is more favorable than Insynergy Products.

Earnings and Valuation

This table compares Insynergy Products and Honest”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Insynergy Products	$40.48 million	0.58	-$20.93 million	($0.03)	-1.00
Honest	$371.32 million	0.96	-$15.69 million	($0.17)	-19.12

Honest has higher revenue and earnings than Insynergy Products. Honest is trading at a lower price-to-earnings ratio than Insynergy Products, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Insynergy Products and Honest’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Insynergy Products	-61.88%	-99.43%	-50.57%
Honest	-5.39%	3.52%	2.71%

Institutional & Insider Ownership

45.5% of Honest shares are held by institutional investors. 34.8% of Insynergy Products shares are held by insiders. Comparatively, 9.4% of Honest shares are held by 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.

Volatility & Risk

Insynergy Products has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500. Comparatively, Honest has a beta of 2.13, indicating that its share price is 113% more volatile than the S&P 500.

Summary

Honest beats Insynergy Products on 11 of the 14 factors compared between the two stocks.

About Insynergy Products

Starco Brands, Inc. markets consumer products through retail and online in the United States. It offers products in various categories, including household cleaning, DIY/Hardware, paints, coatings and adhesives, household, hair care, disinfectants, automotive, motorcycle, arts and crafts, personal care cosmetics, personal care FDA, sun care, food, cooking oils, beverages, and spirits and wine under the Winona, Whipshots, Skylar, Soylent, and Art of Sport brands. The company was formerly known as Insynergy Products, Inc. and changed its name to Starco Brands, Inc. in September 2017. Starco Brands, Inc. was incorporated in 2010 and is based in Santa Monica, California.

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.