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 $2.1B against $476.3M — 4.3× the size. The Honest Company, Inc. trades at the lower P/E: 6.1× against 26.9×. Spectrum Brands Holdings Inc. grew revenue faster over the last twelve months: 0.82% against −12.8%. The Honest Company, Inc. has the higher net margin (23.5% vs 2.76%) and the lower return on invested capital (−5.50% vs 3.28%). Across the 21 metrics below, Spectrum Brands Holdings Inc. leads on 12 and The Honest Company, Inc. on 9.

Valuation

Metric HNST SPB Household & Personal Products median
P/E 6.11 26.89 25.45
P/S 1.45 0.72 1.17
P/B 1.84 1.11 2.43
Price to free cash flow 9.97 7.05 20.67
EV/EBITDA n/m 7.86 13.40
EV/Sales 1.25 0.84 1.24
Earnings yield 16.38% 3.72% 1.13%
Free cash flow yield 10.03% 14.18% 3.81%

Profitability

Metric HNST SPB Household & Personal Products median
Gross margin 37.58% 39.65% 46.90%
Operating margin (4.22%) 4.03% 1.31%
Net margin 23.47% 2.76% 2.32%
Free cash flow margin 14.54% 10.15% 4.87%
Return on equity 34.60% 4.24% 4.67%
Return on assets 28.29% 2.23% 0.00%
Return on invested capital (5.50%) 3.28% 0.57%

Growth

Metric HNST SPB Household & Personal Products median
Revenue growth (TTM) (12.81%) 0.82% 2.91%
EPS growth (last fiscal year) (133.33%) (5.85%) (5.01%)
Revenue growth, 5-year CAGR 4.32% 1.39% 1.39%
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 0.44
Current ratio 4.26 2.41 1.75
Net debt to EBITDA 10.05 1.96 1.37

Dividend

Metric HNST SPB Household & Personal Products median
Dividend yield — 2.11% 2.48%
Payout ratio — 0.57 0.74

Size

Metric HNST SPB Household & Personal Products median
Market cap 476.34m 2.05b 671.37m

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