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 $2.0B against $566.5M — 3.4× the size. The Honest Company, Inc. has negative trailing earnings, so its P/E is not meaningful; Spectrum Brands Holdings Inc. trades at 25.7×. 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 25.65 22.55
P/S 1.71 0.68 1.13
P/B 3.51 1.06 3.02
Price to free cash flow 11.11 6.73 17.73
EV/EBITDA n/m 7.56 12.27
EV/Sales 1.47 0.81 1.26
Earnings yield (1.96%) 3.90% 0.27%
Free cash flow yield 9.00% 14.87% 4.03%

Profitability

Metric HNST SPB Household & Personal Products median
Gross margin 35.66% 39.65% 46.28%
Operating margin (4.37%) 4.03% 0.79%
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% 0.00%

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%) —
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 1.64
Net debt to EBITDA 10.05 1.96 1.37

Dividend

Metric HNST SPB Household & Personal Products median
Dividend yield — 1.96% 1.96%
Payout ratio 0.00 4.80 0.49

Size

Metric HNST SPB Household & Personal Products median
Market cap 566.46m 1.95b 625.04m

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