Soupman (OTCMKTS:SOUPQ) and Honest (NASDAQ:HNST) Financial Survey

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Honest	1	5	2	0	2.13
Soupman	0	0	0	0	0.00

Honest currently has a consensus target price of $5.10, suggesting a potential upside of 88.54%. Given Honest’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Honest is more favorable than Soupman.

Earnings & Valuation

This table compares Honest and Soupman”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Honest	$383.12 million	0.79	-$6.12 million	$0.06	45.08
Soupman	N/A	N/A	N/A	N/A	N/A

Soupman has lower revenue, but higher earnings than Honest.

Institutional and Insider Ownership

45.5% of Honest shares are owned by institutional investors. 8.9% of Honest shares are owned by insiders. Comparatively, 12.1% of Soupman shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Honest	1.85%	3.86%	2.82%
Soupman	N/A	N/A	N/A

Summary

Honest beats Soupman on 8 of the 9 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 Soupman

Soupman, Inc., together with its subsidiaries, manufactures and sells soups in the United States. It markets and sells its products to grocery chains, school systems, and franchisees under The Original Soupman brand name. The company also franchises Original Soupman restaurants and mobile unit; and other high-traffic locations, such as casinos, airports, theme parks, and other tourist locations. It has 9 franchise locations, including co-branded locations. The company was formerly known as Passport Arts, Inc. and changed its name to Soupman, Inc. in January 2011. Soupman, Inc. was founded in 1984 and is based in Staten Island, New York.