Financial Comparison: RDE (NASDAQ:GIFT) and Honest (NASDAQ:HNST)

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Honest	$368.77 million	1.75	-$39.24 million	($0.04)	-160.25
RDE	$97.01 million	0.24	N/A	N/A	N/A

RDE has lower revenue, but higher earnings than Honest.

Risk & Volatility

Honest has a beta of 2.45, suggesting that its share price is 145% more volatile than the S&P 500. Comparatively, RDE has a beta of -0.73, suggesting that its share price is 173% less volatile than the S&P 500.

Institutional & Insider Ownership

45.5% of Honest shares are owned by institutional investors. 8.6% of Honest shares are owned by insiders. Comparatively, 20.5% of RDE shares are owned 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 RDE’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Honest	-1.13%	-3.26%	-2.06%
RDE	-21.08%	-76.24%	-46.38%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Honest and RDE, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Honest	0	3	4	1	2.75
RDE	0	0	0	0	0.00

Honest currently has a consensus price target of $6.93, indicating a potential upside of 8.09%. Given Honest’s stronger consensus rating and higher possible upside, equities analysts plainly believe Honest is more favorable than RDE.

Summary

Honest beats RDE on 11 of the 12 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 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.