Comprehensive Stock Comparison
Compare The Honest Company, Inc. (HNST) vs Yatsen Holding Limited (YSG) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | YSG | 0.8% revenue growth vs HNST's -1.9% |
| Value | YSG | Lower P/E (2.5x vs 32.0x) |
| Quality / Margins | HNST | -4.2% net margin vs YSG's -11.8% |
| Stability / Safety | YSG | Beta 0.93 vs HNST's 1.44 |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | YSG | +16.8% vs HNST's -48.1% |
| Efficiency (ROA) | HNST | -7.0% ROA vs YSG's -11.9%, ROIC -13.5% vs -10.9% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
The Honest Company is a consumer goods company that sells baby, personal care, and household products marketed as clean and sustainable. It generates revenue primarily through direct-to-consumer e-commerce sales — about 60% of total — and wholesale distribution to major retailers like Target and Amazon. Its key advantage is brand trust built on transparency about ingredients and a founder-driven reputation for safer, eco-friendly alternatives in the baby and beauty categories.
Yatsen Holding is a Chinese beauty company that develops and sells color cosmetics, skincare, and beauty products under multiple brands including Perfect Diary, Little Ondine, and Galénic. It generates revenue primarily through direct-to-consumer online sales — via its own e-commerce platforms and third-party marketplaces — complemented by physical retail stores across China. The company's competitive advantage lies in its data-driven product development, strong digital marketing capabilities, and multi-brand portfolio that targets different consumer segments across China's beauty market.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
HNST leads in 2 of 6 categories (Profitability & Efficiency, Total Returns). YSG leads in 1 (Financial Metrics). 2 tied.
Financial Metrics (TTM)
YSG is the larger business by revenue, generating $4.1B annually — 11.0x HNST's $371M. HNST is the more profitable business, keeping -4.2% of every revenue dollar as net income compared to YSG's -11.8%. On growth, YSG holds the edge at +50.0% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | HNSTThe Honest Compan… | YSGYatsen Holding Li… |
|---|---|---|
| RevenueTrailing 12 months | $371M | $4.1B |
| EBITDAEarnings before interest/tax | -$11M | -$60M |
| Net IncomeAfter-tax profit | -$16M | -$479M |
| Free Cash FlowCash after capex | $14M | $0 |
| Gross MarginGross profit ÷ Revenue | +33.3% | +78.3% |
| Operating MarginEBIT ÷ Revenue | -5.0% | -3.9% |
| Net MarginNet income ÷ Revenue | -4.2% | -11.8% |
| FCF MarginFCF ÷ Revenue | +3.7% | -8.7% |
| Rev. Growth (YoY)Latest quarter vs prior year | -11.8% | +50.0% |
| EPS Growth (YoY)Latest quarter vs prior year | — | +40.7% |
Valuation Metrics
| Metric | HNSTThe Honest Compan… | YSGYatsen Holding Li… |
|---|---|---|
| Market CapShares × price | $316M | $2.7B |
| Enterprise ValueMkt cap + debt − cash | $231M | $2.6B |
| Trailing P/EPrice ÷ TTM EPS | -20.00x | -4.36x |
| Forward P/EPrice ÷ next-FY EPS est. | 32.00x | 2.52x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | — | — |
| Price / SalesMarket cap ÷ Revenue | 0.85x | 5.33x |
| Price / BookPrice ÷ Book value/share | 1.84x | 1.00x |
| Price / FCFMarket cap ÷ FCF | 23.21x | — |
Profitability & Efficiency
HNST delivers a -9.2% return on equity — every $100 of shareholder capital generates $-9 in annual profit, vs $-16 for YSG. HNST carries lower financial leverage with a 0.03x debt-to-equity ratio, signaling a more conservative balance sheet compared to YSG's 0.05x. On the Piotroski fundamental quality scale (0–9), HNST scores 5/9 vs YSG's 4/9, reflecting solid financial health.
| Metric | HNSTThe Honest Compan… | YSGYatsen Holding Li… |
|---|---|---|
| ROE (TTM)Return on equity | -9.2% | -15.9% |
| ROA (TTM)Return on assets | -7.0% | -11.9% |
| ROICReturn on invested capital | -13.5% | -10.9% |
| ROCEReturn on capital employed | -10.2% | -11.1% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 4 |
| Debt / EquityFinancial leverage | 0.03x | 0.05x |
| Net DebtTotal debt minus cash | -$85M | -$668M |
| Cash & Equiv.Liquid assets | $90M | $817M |
| Total DebtShort + long-term debt | $5M | $149M |
| Interest CoverageEBIT ÷ Interest expense | 9.37x | — |
Total Returns (with DRIP)
A $10,000 investment in HNST five years ago would be worth $1,750 today (with dividends reinvested), compared to $476 for YSG. Over the past 12 months, YSG leads with a +16.8% total return vs HNST's -48.1%. The 3-year compound annual growth rate (CAGR) favors HNST at 0.1% vs YSG's -14.4% — a key indicator of consistent wealth creation.
| Metric | HNSTThe Honest Compan… | YSGYatsen Holding Li… |
|---|---|---|
| YTD ReturnYear-to-date | +7.3% | +5.0% |
| 1-Year ReturnPast 12 months | -48.1% | +16.8% |
| 3-Year ReturnCumulative with dividends | +0.4% | -37.3% |
| 5-Year ReturnCumulative with dividends | -82.5% | -95.2% |
| 10-Year ReturnCumulative with dividends | -82.5% | -95.2% |
| CAGR (3Y)Annualised 3-year return | +0.1% | -14.4% |
Risk & Volatility
YSG is the less volatile stock with a 0.93 beta — it tends to amplify market swings less than HNST's 1.44 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. HNST currently trades 49.8% from its 52-week high vs YSG's 38.5% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | HNSTThe Honest Compan… | YSGYatsen Holding Li… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.44x | 0.93x |
| 52-Week HighHighest price in past year | $5.62 | $11.57 |
| 52-Week LowLowest price in past year | $2.07 | $3.30 |
| % of 52W HighCurrent price vs 52-week peak | +49.8% | +38.5% |
| RSI (14)Momentum oscillator 0–100 | 71.3 | 61.6 |
| Avg Volume (50D)Average daily shares traded | 1.7M | 92K |
Analyst Outlook
Wall Street rates HNST as "Hold" and YSG as "Hold".
| Metric | HNSTThe Honest Compan… | YSGYatsen Holding Li… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Hold |
| Price TargetConsensus 12-month target | $3.00 | — |
| # AnalystsCovering analysts | 9 | 3 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | 1 | — |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +2.2% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | May 21 | Feb 26 | Change |
|---|---|---|---|
| The Honest Company,… (HNST) | 100 | 15.63 | -84.4% |
| Yatsen Holding Limi… (YSG) | 100 | 7.45 | -92.5% |
The Honest Company,… (HNST) returned -83% over 5 years vs Yatsen Holding Limi… (YSG)'s -95%.
Chart 2Revenue Growth — 10 Years
| Stock | 2018 | 2025 | Change |
|---|---|---|---|
| The Honest Company,… (HNST) | $236M | $371M | +57.6% |
| Yatsen Holding Limi… (YSG) | $660M | $3.4B | +421.4% |
Chart 3Net Margin Trend — 10 Years
| Stock | 2018 | 2025 | Change |
|---|---|---|---|
| The Honest Company,… (HNST) | -13.2% | -4.2% | +68.0% |
| Yatsen Holding Limi… (YSG) | -6.3% | -20.9% | -230.4% |
Chart 4EPS Growth — 10 Years
| Stock | 2018 | 2025 | Change |
|---|---|---|---|
| The Honest Company,… (HNST) | -0.34 | -0.14 | +58.8% |
| Yatsen Holding Limi… (YSG) | -0.05 | -7 | -13157.6% |
Chart 5Free Cash Flow — 5 Years
The Honest Company, Inc. generated $14M FCF in 2025 (+135% vs 2021). Yatsen Holding Limited generated $-301M FCF in 2024 (+75% vs 2021).
HNST vs YSG: Frequently Asked Questions
8 questions · data-driven answers · updated daily
01Is HNST or YSG a better buy right now?
Analysts rate The Honest Company, Inc. (HNST) a "Hold" — based on 9 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which is the better long-term investment — HNST or YSG?
Over the past 5 years, The Honest Company, Inc. (HNST) delivered a total return of -82.5%, compared to -95.2% for Yatsen Holding Limited (YSG). A $10,000 investment in HNST five years ago would be worth approximately $2K today (assuming dividends reinvested). Over 10 years, the gap is even starker: HNST returned -82.5% versus YSG's -95.2%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
03Which is safer — HNST or YSG?
By beta (market sensitivity over 5 years), Yatsen Holding Limited (YSG) is the lower-risk stock at 0.93β versus The Honest Company, Inc.'s 1.44β — meaning HNST is approximately 54% more volatile than YSG relative to the S&P 500. On balance sheet safety, The Honest Company, Inc. (HNST) carries a lower debt/equity ratio of 3% versus 5% for Yatsen Holding Limited — giving it more financial flexibility in a downturn.
04Which has better profit margins — HNST or YSG?
The Honest Company, Inc. (HNST) is the more profitable company, earning -4.2% net margin versus -20.9% for Yatsen Holding Limited — meaning it keeps -4.2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: HNST leads at -5.0% versus -12.4% for YSG. At the gross margin level — before operating expenses — YSG leads at 77.1%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
05Is HNST or YSG more undervalued right now?
On forward earnings alone, Yatsen Holding Limited (YSG) trades at 2.5x forward P/E versus 32.0x for The Honest Company, Inc. — 29.5x cheaper on a one-year earnings basis.
06Which pays a better dividend — HNST or YSG?
None of the stocks in this comparison currently pay a material dividend. All are effectively zero-yield and should be held for capital appreciation rather than income.
07Is HNST or YSG better for a retirement portfolio?
For long-horizon retirement investors, Yatsen Holding Limited (YSG) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.93)). Both have compounded well over 10 years (YSG: -95.2%, HNST: -82.5%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
08What are the main differences between HNST and YSG?
Both stocks operate in the Consumer Cyclical sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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