RDE (NASDAQ:GIFT – Get Free Report) and Honest (NASDAQ:HNST – Get Free Report) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, risk and profitability.
Risk & Volatility
RDE has a beta of -0.73, meaning that its stock price is 173% less volatile than the S&P 500. Comparatively, Honest has a beta of 2.45, meaning that its stock price is 145% more volatile than the S&P 500.
Valuation and Earnings
This table compares RDE and Honest”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| RDE | $97.01 million | 0.25 | N/A | N/A | N/A |
| Honest | $368.77 million | 1.65 | -$39.24 million | ($0.04) | -151.00 |
Analyst Ratings
This is a summary of current ratings and price targets for RDE and Honest, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| RDE | 0 | 0 | 0 | 0 | 0.00 |
| Honest | 0 | 3 | 4 | 1 | 2.75 |
Honest has a consensus target price of $6.93, suggesting a potential upside of 14.71%. Given Honest’s stronger consensus rating and higher probable upside, analysts clearly believe Honest is more favorable than RDE.
Institutional and Insider Ownership
45.5% of Honest shares are owned by institutional investors. 20.5% of RDE shares are owned by insiders. Comparatively, 8.6% of Honest shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Profitability
This table compares RDE and Honest’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| RDE | -21.08% | -76.24% | -46.38% |
| Honest | -1.13% | -3.26% | -2.06% |
Summary
Honest beats RDE on 11 of the 12 factors compared between the two stocks.
About RDE
RDE, Inc. owns and operates a restaurant deal space in the United States. The company operates Restaurant.com that connects digital consumers, businesses, and communities with dining and merchant deal options at approximately 182,500 restaurants and retailers to approximately 7.8 million customers. It sells discount certificates for restaurants, as well as complementary entertainment and travel offerings, and consumer products on behalf of third-party merchants. The company is based in Schaumburg, Illinois.
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.
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