The Honest Company, Inc. (HNST) vs Spectrum Brands Holdings Inc. (SPB)

The Honest Company, Inc. and Spectrum Brands Holdings Inc. are both Household & Personal Products companies. Spectrum Brands Holdings Inc. is the larger, with a market value of $1.8B against $549.3M — 3.3× the size. The Honest Company, Inc. has negative trailing earnings, so its P/E is not meaningful; Spectrum Brands Holdings Inc. trades at 23.9×. Spectrum Brands Holdings Inc. grew revenue faster over the last twelve months: 0.82% against −12.3%. Spectrum Brands Holdings Inc. has the higher net margin (2.76% vs −3.56%) and the higher return on invested capital (3.28% vs −15.3%). Across the 20 metrics below, Spectrum Brands Holdings Inc. leads on 16 and The Honest Company, Inc. on 4.

Valuation

Metric HNST SPB Household & Personal Products median
P/E n/m 23.87 23.53
P/S 1.62 0.64 1.58
P/B 3.32 0.99 3.36
Price to free cash flow 10.50 6.26 19.95
EV/EBITDA n/m 7.11 13.02
EV/Sales 1.42 0.76 1.42
Earnings yield (2.07%) 4.19% 0.25%
Free cash flow yield 9.52% 15.98% 3.66%

Profitability

Metric HNST SPB Household & Personal Products median
Gross margin 35.66% 39.65% 47.14%
Operating margin (4.37%) 4.03% 1.31%
Net margin (3.56%) 2.76% 0.61%
Free cash flow margin 15.41% 10.15% 2.89%
Return on equity (6.87%) 4.24% 2.12%
Return on assets (5.19%) 2.23% 0.00%
Return on invested capital (15.27%) 3.28% 0.24%

Growth

Metric HNST SPB Household & Personal Products median
Revenue growth (TTM) (12.26%) 0.82% 2.93%
EPS growth (last fiscal year) (133.33%) (5.85%) (12.73%)
Revenue growth, 5-year CAGR 4.32% 1.39% 2.03%
Net income growth, 5-year CAGR 0.00% 0.43% 0.00%

Health

Metric HNST SPB Household & Personal Products median
Debt to equity 0.00 0.33 0.46
Current ratio 3.94 2.41 1.59
Net debt to EBITDA 10.05 1.96 1.37

Dividend

Metric HNST SPB Household & Personal Products median
Dividend yield — 2.38% 2.79%
Payout ratio — 0.57 0.87

Size

Metric HNST SPB Household & Personal Products median
Market cap 549.29m 1.81b 620.01m

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