Reviewing Honest (NASDAQ:HNST) and Charlotte’s Web (OTCMKTS:CWBHF)

Honest (NASDAQ:HNST) and Charlotte’s Web (OTCMKTS:CWBHF) are both consumer staples companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, analyst recommendations, dividends, earnings and risk.

Institutional & Insider Ownership

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

Profitability

This table compares Honest and Charlotte’s Web’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%
Charlotte’s Web	N/A	N/A	N/A

Valuation and Earnings

This table compares Honest and Charlotte’s Web”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Honest	$371.32 million	1.53	-$15.69 million	($0.11)	-46.77
Charlotte’s Web	N/A	N/A	N/A	N/A	N/A

Charlotte’s Web has lower revenue, but higher earnings than Honest.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Honest and Charlotte’s Web, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Honest	2	4	2	1	2.22
Charlotte’s Web	0	0	0	0	0.00

Honest currently has a consensus price target of $4.38, indicating a potential downside of 14.87%. Given Honest’s stronger consensus rating and higher probable upside, equities analysts clearly believe Honest is more favorable than Charlotte’s Web.

Summary

Honest beats Charlotte’s Web on 9 of the 10 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 Charlotte’s Web

Charlotte's Web Holdings, Inc. is involved in the farming, manufacture, marketing, and sale of hemp-derived cannabidiol (CBD) wellness products. The company's products categories include hemp extract oil tinctures, such as liquid products; gummies; and capsules, CBD topical creams, and lotions, as well as products for pets under the Charlotte's Web, ReCreate, CBD Medic, CBD Clinic, and Harmony Hemp brands. Its products contain naturally occurring phytocannabinoids, including CBD, cannabichromene, cannabigerol, cannabinol, terpenes, flavonoids, and other beneficial hemp compounds. The company distributes its products through retail outlets and health care practitioners, as well as online through its website. It has a collaboration between its CW Labs science division and Colorado State University's College of Agricultural Sciences; and scientific collaboration with McLean Hospital. The company was formerly known as Stanley Brothers Holdings Inc. and changed its name to Charlotte's Web Holdings, Inc. in July 2018. The company was founded in 2013 and is headquartered in Louisville, Colorado.