Honest (NASDAQ:HNST) and Foxx Development (NASDAQ:FOXX) Financial Survey
by Renee Jackson · The Cerbat GemFoxx Development (NASDAQ:FOXX – Get Free Report) and Honest (NASDAQ:HNST – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, valuation and risk.
Profitability
This table compares Foxx Development and Honest’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Foxx Development | -24.62% | N/A | -40.69% |
| Honest | -4.22% | 4.57% | 3.39% |
Volatility and Risk
Foxx Development has a beta of -0.17, indicating that its share price is 117% less volatile than the S&P 500. Comparatively, Honest has a beta of 2.16, indicating that its share price is 116% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Foxx Development and Honest, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Foxx Development | 1 | 0 | 0 | 0 | 1.00 |
| Honest | 2 | 4 | 1 | 0 | 1.86 |
Honest has a consensus price target of $3.00, suggesting a potential upside of 6.38%. Given Honest’s stronger consensus rating and higher possible upside, analysts plainly believe Honest is more favorable than Foxx Development.
Earnings & Valuation
This table compares Foxx Development and Honest”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Foxx Development | $65.92 million | 0.60 | -$9.02 million | ($2.26) | -2.48 |
| Honest | $371.32 million | 0.85 | -$15.69 million | ($0.14) | -20.14 |
Foxx Development has higher earnings, but lower revenue than Honest. Honest is trading at a lower price-to-earnings ratio than Foxx Development, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
60.4% of Foxx Development shares are held by institutional investors. Comparatively, 45.5% of Honest shares are held by institutional investors. 31.6% of Foxx Development shares are held by insiders. Comparatively, 8.9% of Honest shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
Honest beats Foxx Development on 10 of the 14 factors compared between the two stocks.
About Foxx Development
Foxx Development Holdings Inc. is a consumer electronics and integrated Internet-of-Things solution company catering to both retail and institutional clients. The company currently sells a diverse range of products including mobile phones, tablets and other consumer electronics devices principally in United State and is in the process of developing and distributing end-to-end communication terminals and IoT solutions. Foxx Development Holdings Inc., formerly known as Acri Capital Acquisition Corporation, is based in Austin, TX.
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.