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HNST vs KO

HNST
The Honest Company, Inc.
BEARISH
Price
$2.92
Market Cap
$328.4M
Sector
Consumer Defensive
AI Confidence
85%
KO
The Coca-Cola Company
NEUTRAL
Price
$75.97
Market Cap
$326.96B
Sector
Consumer Defensive
AI Confidence
90%

Valuation

P/E Ratio
HNST
--
KO
24.99
Forward P/E
HNST
19.47
KO
21.97
P/B Ratio
HNST
1.94
KO
10.16
P/S Ratio
HNST
0.88
KO
6.82
EV/EBITDA
HNST
25.99
KO
22.47

Profitability

Gross Margin
HNST
38.67%
KO
61.63%
Operating Margin
HNST
1.27%
KO
24.66%
Profit Margin
HNST
-4.22%
KO
27.34%
ROE
HNST
-9.12%
KO
43.32%
ROA
HNST
1.8%
KO
9.15%

Growth

Revenue Growth
HNST
-11.8%
KO
2.4%
Earnings Growth
HNST
--
KO
3.6%

Financial Health

Debt/Equity
HNST
0.08
KO
1.4
Current Ratio
HNST
3.98
KO
1.46
Quick Ratio
HNST
2.43
KO
0.89

Dividends

Dividend Yield
HNST
--
KO
2.71%
Payout Ratio
HNST
0.0%
KO
67.11%

AI Verdict

HNST BEARISH

The Honest Company exhibits significant fundamental weakness, highlighted by a Piotroski F-Score of 2/9, indicating poor financial health and deteriorating operational efficiency. While the company maintains a strong liquidity position with a current ratio of 3.98 and very low debt, these are offset by a concerning -11.80% YoY revenue decline and negative profit margins. Heavy insider selling by the CEO and other officers, combined with a 0/100 technical trend, suggests a lack of confidence in near-term recovery. Despite a low Price/Sales ratio of 0.88, the lack of growth and poor health scores make the current valuation a value trap.

Strengths
Very low Debt/Equity ratio (0.08)
Strong short-term liquidity (Current Ratio 3.98)
Healthy Gross Margin (38.67%)
Risks
Negative revenue growth (-11.80% YoY)
Weak Piotroski F-Score (2/9) indicating fundamental decay
Aggressive insider selling (9 sell transactions, 0 buys)
KO NEUTRAL

KO shows neutral fundamentals based on deterministic rules. Financial strength is weak (F-Score 3/9). Mixed signals with both opportunities and risks present.

Strengths
Strong profitability (27.3% margin)
Strong ROE of 43.3%
Risks
Premium vs Graham Number ($22.62)
Weak financial trend (Piotroski F-Score: 3/9)

Compare Another Pair

HNST vs KO: Head-to-Head Comparison

This page compares The Honest Company, Inc. (HNST) and The Coca-Cola Company (KO) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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