Head-To-Head Survey: Honest (NASDAQ:HNST) versus Chanson International (NASDAQ:CHSN)

Honest (NASDAQ:HNST) and Chanson International (NASDAQ:CHSN) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, earnings, profitability and valuation.

Analyst Ratings

This is a summary of recent ratings and price targets for Honest and Chanson International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Honest	0	2	3	1	2.83
Chanson International	0	0	0	0	0.00

Honest currently has a consensus target price of $7.70, suggesting a potential upside of 59.75%. Given Honest’s stronger consensus rating and higher possible upside, research analysts clearly believe Honest is more favorable than Chanson International.

Insider & Institutional Ownership

45.5% of Honest shares are held by institutional investors. Comparatively, 2.8% of Chanson International shares are held by institutional investors. 8.9% of Honest shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

Honest has a beta of 2.39, indicating that its stock price is 139% more volatile than the S&P 500. Comparatively, Chanson International has a beta of -2.03, indicating that its stock price is 303% less volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Honest	$378.34 million	1.40	-$6.12 million	($0.02)	-241.00
Chanson International	$18.23 million	0.21	$760,000.00	N/A	N/A

Chanson International has lower revenue, but higher earnings than Honest.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Honest	-0.38%	-0.95%	-0.64%
Chanson International	N/A	N/A	N/A

Summary

Honest beats Chanson International on 9 of the 13 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 Chanson International

Chanson International Holding manufactures and sells a range of bakery products, seasonal products, and beverage products for individual and corporate customers. It offers packaged bakery products, such as cakes, bread, sweets, and snacks; birthday cakes; made-in-store pastries; mooncakes and zongzi products; and other products, including sandwiches, salads, toasts, croissants, soups, and desserts, as well as beverages and juice products. The company sells its products through a chain of bakeries, as well as digital platforms and third-party online food ordering platforms. It also offers eat-in services in its stores. The company sells its bakery and other products under the George Chanson, Patisserie Chanson, and Chanson brand names. It operates in Xinjiang in the People's Republic of China; and New York City, the United States. The company was formerly known as formerly known as RON Holding Limited and changed its name to Chanson International Holding in December 2020. The company was incorporated in 2019 and is headquartered in Urumqi, China. Chanson International Holding operates as a subsidiary of Danton Global Limited.