Analyzing Honest (NASDAQ:HNST) and Colruyt (OTCMKTS:CUYTY)

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

Institutional & Insider Ownership

0.0% of Colruyt shares are owned by institutional investors. Comparatively, 45.5% of Honest shares are owned by institutional investors. 9.4% of Honest shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Colruyt	N/A	N/A	N/A
Honest	-5.39%	3.52%	2.71%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Colruyt	$12.26 billion	0.43	$352.00 million	N/A	N/A
Honest	$371.32 million	1.10	-$15.69 million	($0.17)	-21.88

Colruyt has higher revenue and earnings than Honest.

Analyst Ratings

This is a summary of current ratings and recommmendations for Colruyt and Honest, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Colruyt	1	2	1	1	2.40
Honest	2	4	2	0	2.00

Honest has a consensus target price of $3.47, suggesting a potential downside of 6.81%. Given Honest’s higher probable upside, analysts plainly believe Honest is more favorable than Colruyt.

Risk & Volatility

Colruyt has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500. Comparatively, Honest has a beta of 2.11, meaning that its stock price is 111% more volatile than the S&P 500.

Summary

Honest beats Colruyt on 8 of the 13 factors compared between the two stocks.

About Colruyt

Colruyt Group N.V., together with its subsidiaries, engages in the retail, wholesale, food service, and other activities in Belgium, France, Luxembourg, and internationally. It operates through three segments: Retail, Wholesale and Foodservice, and Other Activities. The company provides groceries, fresh products, dry products, and frozen and non-food products; and operates CNG, hydrogen filling, and charging stations. It also provides printing and document management solutions; and develops, constructs, operates, maintains, and finances wind energy projects. The company offers its products and services under the Bike Republic, Bio-Planet, Boni Selection, Collect&Go, Colruyt Group Academy, Colruyt Lowest Prices, Colruyt Prix Qualité, Cru, DATS 24, Dreambaby, Dreamland, Everyday, Graindor, Kangourou, Okay, Spar Colruyt Group, Xtra, Jims, Newpharma, The Fashion Society, Codifrance, Colex, Solucious, Spar For You, and Symeta Hybrid brands. It provides its products and services to wholesalers, commercial customers, and affiliated independent merchants, as well as schools, care homes, the hospitality sector, etc. The company was formerly known as Etn. Fr. Colruyt NV and changed its name to Colruyt Group N.V. in October 2023. The company was founded in 1928 and is headquartered in Halle, Belgium.

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.