Comprehensive Stock Comparison
Compare Sally Beauty Holdings, Inc. (SBH) vs The Honest Company, Inc. (HNST) 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 | SBH | -0.4% revenue growth vs HNST's -1.9% |
| Value | SBH | Lower P/E (7.8x vs 32.0x) |
| Quality / Margins | SBH | 4.9% net margin vs HNST's -4.2% |
| Stability / Safety | SBH | Beta 0.85 vs HNST's 1.44 |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | SBH | +78.2% vs HNST's -48.1% |
| Efficiency (ROA) | SBH | 6.3% ROA vs HNST's -7.0%, ROIC 11.4% vs -13.5% |
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
Sally Beauty Holdings is a specialty retailer and distributor of professional beauty supplies operating through two main segments. The company generates revenue primarily from its Sally Beauty Supply stores serving retail customers (~60% of sales) and its Beauty Systems Group segment selling directly to salons and professionals through stores and sales forces (~40%). Its competitive advantage lies in its extensive physical store network—nearly 4,800 locations—and dual-channel approach that serves both retail consumers and professional salon clients.
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.
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
SBH leads in 5 of 6 categories — strongest in Financial Metrics and Valuation Metrics.
Financial Metrics (TTM)
SBH is the larger business by revenue, generating $3.7B annually — 10.0x HNST's $371M. SBH is the more profitable business, keeping 4.9% of every revenue dollar as net income compared to HNST's -4.2%. On growth, SBH holds the edge at +0.6% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | SBHSally Beauty Hold… | HNSTThe Honest Compan… |
|---|---|---|
| RevenueTrailing 12 months | $3.7B | $371M |
| EBITDAEarnings before interest/tax | $378M | -$11M |
| Net IncomeAfter-tax profit | $180M | -$16M |
| Free Cash FlowCash after capex | $253M | $14M |
| Gross MarginGross profit ÷ Revenue | +51.7% | +33.3% |
| Operating MarginEBIT ÷ Revenue | +8.2% | -5.0% |
| Net MarginNet income ÷ Revenue | +4.9% | -4.2% |
| FCF MarginFCF ÷ Revenue | +6.8% | +3.7% |
| Rev. Growth (YoY)Latest quarter vs prior year | +0.6% | -11.8% |
| EPS Growth (YoY)Latest quarter vs prior year | -22.4% | — |
Valuation Metrics
| Metric | SBHSally Beauty Hold… | HNSTThe Honest Compan… |
|---|---|---|
| Market CapShares × price | $1.6B | $316M |
| Enterprise ValueMkt cap + debt − cash | $3.0B | $231M |
| Trailing P/EPrice ÷ TTM EPS | 8.50x | -20.00x |
| Forward P/EPrice ÷ next-FY EPS est. | 7.77x | 32.00x |
| PEG RatioP/E ÷ EPS growth rate | 0.62x | — |
| EV / EBITDAEnterprise value multiple | 6.97x | — |
| Price / SalesMarket cap ÷ Revenue | 0.42x | 0.85x |
| Price / BookPrice ÷ Book value/share | 2.10x | 1.84x |
| Price / FCFMarket cap ÷ FCF | 9.07x | 23.21x |
Profitability & Efficiency
SBH delivers a 21.9% return on equity — every $100 of shareholder capital generates $22 in annual profit, vs $-9 for HNST. HNST carries lower financial leverage with a 0.03x debt-to-equity ratio, signaling a more conservative balance sheet compared to SBH's 1.97x. On the Piotroski fundamental quality scale (0–9), SBH scores 8/9 vs HNST's 5/9, reflecting strong financial health.
| Metric | SBHSally Beauty Hold… | HNSTThe Honest Compan… |
|---|---|---|
| ROE (TTM)Return on equity | +21.9% | -9.2% |
| ROA (TTM)Return on assets | +6.3% | -7.0% |
| ROICReturn on invested capital | +11.4% | -13.5% |
| ROCEReturn on capital employed | +14.6% | -10.2% |
| Piotroski ScoreFundamental quality 0–9 | 8 | 5 |
| Debt / EquityFinancial leverage | 1.97x | 0.03x |
| Net DebtTotal debt minus cash | $1.4B | -$85M |
| Cash & Equiv.Liquid assets | $149M | $90M |
| Total DebtShort + long-term debt | $1.6B | $5M |
| Interest CoverageEBIT ÷ Interest expense | 3.74x | 9.37x |
Total Returns (with DRIP)
A $10,000 investment in SBH five years ago would be worth $9,079 today (with dividends reinvested), compared to $1,750 for HNST. Over the past 12 months, SBH leads with a +78.2% total return vs HNST's -48.1%. The 3-year compound annual growth rate (CAGR) favors HNST at 0.1% vs SBH's -0.0% — a key indicator of consistent wealth creation.
| Metric | SBHSally Beauty Hold… | HNSTThe Honest Compan… |
|---|---|---|
| YTD ReturnYear-to-date | +10.9% | +7.3% |
| 1-Year ReturnPast 12 months | +78.2% | -48.1% |
| 3-Year ReturnCumulative with dividends | -0.1% | +0.4% |
| 5-Year ReturnCumulative with dividends | -9.2% | -82.5% |
| 10-Year ReturnCumulative with dividends | -49.1% | -82.5% |
| CAGR (3Y)Annualised 3-year return | -0.0% | +0.1% |
Risk & Volatility
SBH is the less volatile stock with a 0.85 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. SBH currently trades 89.7% from its 52-week high vs HNST's 49.8% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | SBHSally Beauty Hold… | HNSTThe Honest Compan… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.85x | 1.44x |
| 52-Week HighHighest price in past year | $17.92 | $5.62 |
| 52-Week LowLowest price in past year | $7.54 | $2.07 |
| % of 52W HighCurrent price vs 52-week peak | +89.7% | +49.8% |
| RSI (14)Momentum oscillator 0–100 | 57.7 | 71.3 |
| Avg Volume (50D)Average daily shares traded | 1.5M | 1.7M |
Analyst Outlook
Wall Street rates SBH as "Hold" and HNST as "Hold". Consensus price targets imply 10.5% upside for SBH (target: $18) vs 7.1% for HNST (target: $3).
| Metric | SBHSally Beauty Hold… | HNSTThe Honest Compan… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Hold |
| Price TargetConsensus 12-month target | $17.75 | $3.00 |
| # AnalystsCovering analysts | 30 | 9 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | 1 | 1 |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | +3.4% | 0.0% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Jun 21 | Feb 26 | Change |
|---|---|---|---|
| Sally Beauty Holdin… (SBH) | 100 | 72.37 | -27.6% |
| The Honest Company,… (HNST) | 105.5 | 15.63 | -85.2% |
Sally Beauty Holdin… (SBH) returned -9% over 5 years vs The Honest Company,… (HNST)'s -83%.
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Sally Beauty Holdin… (SBH) | $4.0B | $3.7B | -6.4% |
| The Honest Company,… (HNST) | $236M | $371M | +57.6% |
Sally Beauty Holdings, Inc.'s revenue grew from $4.0B (2016) to $3.7B (2025) — a -0.7% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Sally Beauty Holdin… (SBH) | 5.6% | 5.3% | -6.2% |
| The Honest Company,… (HNST) | -13.2% | -4.2% | +68.0% |
Sally Beauty Holdings, Inc.'s net margin went from 6% (2016) to 5% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Sally Beauty Holdin… (SBH) | 12 | 7.5 | -37.5% |
Sally Beauty Holdings, Inc. has traded in a 7x–13x P/E range over 9 years; current trailing P/E is ~9x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Sally Beauty Holdin… (SBH) | 1.5 | 1.89 | +26.0% |
| The Honest Company,… (HNST) | -0.34 | -0.14 | +58.8% |
Sally Beauty Holdings, Inc.'s EPS grew from $1.50 (2016) to $1.89 (2025) — a 3% CAGR.
Chart 6Free Cash Flow — 5 Years
Sally Beauty Holdings, Inc. generated $173M FCF in 2025 (-44% vs 2021). The Honest Company, Inc. generated $14M FCF in 2025 (+135% vs 2021).
SBH vs HNST: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is SBH or HNST a better buy right now?
Sally Beauty Holdings, Inc. (SBH) offers the better valuation at 8.5x trailing P/E (7.8x forward), making it the more compelling value choice. Analysts rate Sally Beauty Holdings, Inc. (SBH) a "Hold" — based on 30 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 has the better valuation — SBH or HNST?
On forward P/E, Sally Beauty Holdings, Inc. is actually cheaper at 7.8x.
03Which is the better long-term investment — SBH or HNST?
Over the past 5 years, Sally Beauty Holdings, Inc. (SBH) delivered a total return of -9.2%, compared to -82.5% for The Honest Company, Inc. (HNST). A $10,000 investment in SBH five years ago would be worth approximately $9K today (assuming dividends reinvested). Over 10 years, the gap is even starker: SBH returned -49.1% versus HNST's -82.5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — SBH or HNST?
By beta (market sensitivity over 5 years), Sally Beauty Holdings, Inc. (SBH) is the lower-risk stock at 0.85β versus The Honest Company, Inc.'s 1.44β — meaning HNST is approximately 69% more volatile than SBH relative to the S&P 500. On balance sheet safety, The Honest Company, Inc. (HNST) carries a lower debt/equity ratio of 3% versus 197% for Sally Beauty Holdings, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — SBH or HNST?
Sally Beauty Holdings, Inc. (SBH) is the more profitable company, earning 5.3% net margin versus -4.2% for The Honest Company, Inc. — meaning it keeps 5.3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: SBH leads at 8.9% versus -5.0% for HNST. At the gross margin level — before operating expenses — SBH leads at 51.6%, 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.
06Is SBH or HNST more undervalued right now?
On forward earnings alone, Sally Beauty Holdings, Inc. (SBH) trades at 7.8x forward P/E versus 32.0x for The Honest Company, Inc. — 24.2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for SBH: 10.5% to $17.75.
07Which pays a better dividend — SBH or HNST?
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.
08Is SBH or HNST better for a retirement portfolio?
For long-horizon retirement investors, Sally Beauty Holdings, Inc. (SBH) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.85)). Both have compounded well over 10 years (SBH: -49.1%, 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.
09What are the main differences between SBH and HNST?
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. In terms of investment character: SBH is a small-cap deep-value stock; HNST is a small-cap quality compounder stock. 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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