Maison Solutions (NASDAQ:MSS – 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 institutional ownership, analyst recommendations, valuation, profitability, dividends, earnings and risk.
Volatility & Risk
Maison Solutions has a beta of 5.26, indicating that its share price is 426% more volatile than the S&P 500. Comparatively, Honest has a beta of 2.3, indicating that its share price is 130% more volatile than the S&P 500.
Insider and Institutional Ownership
2.4% of Maison Solutions shares are held by institutional investors. Comparatively, 45.5% of Honest shares are held by institutional investors. 64.7% of Maison Solutions shares are held by company insiders. Comparatively, 8.9% of Honest shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Maison Solutions | $124.22 million | 0.06 | $1.17 million | ($0.26) | -1.37 |
| Honest | $378.34 million | 0.80 | -$6.12 million | $0.06 | 45.17 |
Maison Solutions has higher earnings, but lower revenue than Honest. Maison Solutions is trading at a lower price-to-earnings ratio than Honest, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent recommendations and price targets for Maison Solutions and Honest, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Maison Solutions | 1 | 1 | 1 | 0 | 2.00 |
| Honest | 1 | 4 | 1 | 0 | 2.00 |
Maison Solutions currently has a consensus target price of $4.25, suggesting a potential upside of 1,092.82%. Honest has a consensus target price of $3.00, suggesting a potential upside of 10.70%. Given Maison Solutions’ higher probable upside, equities research analysts clearly believe Maison Solutions is more favorable than Honest.
Profitability
This table compares Maison Solutions and Honest’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Maison Solutions | -4.89% | -46.54% | -6.80% |
| Honest | 1.85% | 3.86% | 2.82% |
Summary
Honest beats Maison Solutions on 8 of the 12 factors compared between the two stocks.
About Maison Solutions
Maison Solutions Inc., together with its subsidiaries, operates as the specialty grocery retailer in California. The company offers perishable products, such as meat, seafood, vegetables, and fruit; non-perishable products, including grocery products comprising cooking utensils, canned foods, Chinese and Asian seasonings and spices, and snacks, as well as liquor, cigarette, lottery, newspaper, reusable bag, non-food, and health products, and general merchandise, beauty care, pharmacy, fuel, and other items and services in its stores. It also offers its products online. The company was formerly known as Maison International, Inc. and changed its name to Maison Solutions Inc. in September 2021. Maison Solutions Inc. was incorporated in 2019 and is based in Monterey Park, California.
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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