In this article, we will be taking a look at the 10 best Humane stocks to buy now. To see more such stocks click 5 Best Humane Stocks to Buy Now.
There isn’t a clear definition of the concept of humane business, primarily because it is an emerging theme in corporate culture. However, the concept can be understood as a way of doing business that cares for humanity (i.e., respects human freedom, well-being, and dignity) and has concern for the Earth (i.e., focuses on environmental conservation).
In a prior piece, we delved deeply into ESG investing and its potential to enable investors to make a positive impact on the world. However, there is another angle of human business activity that one can argue is a subset of ESG — it involves companies that do not test on animals.
The inhumane practice of animal testing for diverse reasons is widespread in the global corporate culture. We noted that cosmetics and medical research companies are the worst offenders. In fact, People for the Ethical Treatment of Animals (PETA), a nonprofit, tax-exempt 501(c)(3) corporation, lists more than 200 companies that do tests on animals. Interestingly, an overwhelming majority are beauty and fashion and pharmaceutical companies.
According to a PwC report, ESG investing – investing activity that focuses on environmental, social and governance factors – is growing exponentially in global markets. The report estimates that ESG investing will reach $33.9 trillion by 2026. In other words, 21.5% of total assets under management in 2026 will be invested in ESG-focused businesses.
ESG investing involves seeking out humane companies that do not conduct animal testing. Thankfully, PETA also lists the companies that do not test on animals, making it easy for investors to make the right choice. In addition, many other publicly traded corporations are strong defenders of animal rights, making them humane by association. For example, Microsoft Corporation (NASDAQ:MSFT) is not only on the PETA ‘safe list’ but is also actively involved in animal welfare advocacy. Accenture Plc (NYSE:ACN) is another major corporation that does well regarding ESG. In this regard, this article intends to provide investors with a list of 10 best humane stocks to buy now.
Photo by Karlo Tottoc on Unsplash
Our Methodology
For this article we focused more on companies that avoid any tests on animals, are working to reduce carbon footprint and have ethical practices and standards. Our research started with a thorough analysis of the PETA ‘safe list’ – these are the companies that have been ascertained to not be involved in any form of animal cruelty. To ensure the list provides a more accurate representation of humane stocks in the US, we expanded our research to The Food Service Industry Protein Sustainability Scorecard, an index maintained by The Humane Society of the United States. We also read social media posts and forum discussions extensively to ensure we select the best humane companies. From the long list of companies we got after our research, we narrowed down to 10 companies with the highest number of hedge fund investors.
Best Humane Stocks to Buy Now
10. Aesthetic Medical International Holdings Group Limited (NASDAQ:AIH)
Market Capitalization as of April 13: $48.76 million
Number of Hedge Fund Holders: 1
Aesthetic Medical International Holdings Group Limited (NASDAQ:AIH) provides aesthetic medical services, including surgical and non-surgical treatments and general healthcare services in China, Hong Kong, and Singapore. It operates 15 treatment centers and plans to maintain and strengthen its market position and brand in China’s aesthetic medical treatment market while expanding its Aesthetic Medical International Holdings Group Limited (NASDAQ:AIH) presence globally.
Amidst the COVID-19 pandemic in 2020, Aesthetic Medical International Holdings Group Limited (NASDAQ:AIH) ensured the safe provision of aesthetic medical services, giving utmost priority to high standards, a robust medical team, and top-notch services for customer satisfaction. The company is actively developing aesthetic medical services with a focus on R&D of technology, expanding its customer base, and aiming to achieve the goal of “safety and beauty.” They plan to use their plastic surgery experience and grasp industry opportunities to upgrade products and services with customer-centricity and technology. Aesthetic Medical International Holdings Group Limited (NASDAQ:AIH) is optimistic about overcoming uncertainties and providing stakeholder value.
At the end of the fourth quarter of 2022, 1 hedge fund in the database of Insider Monkey held stakes worth $17,000 in Aesthetic Medical International Holdings Group Limited (NASDAQ:AIH), down from 2 in the preceding quarter worth $45,000.
9. IRIDEX Corporation (NASDAQ:IRIX)
Market Capitalization as of April 13: $35.58 million
Number of Hedge Fund Holders: 2
IRIDEX Corporation (NASDAQ:IRIX) is a medical device company specializing in developing and commercializing laser-based medical systems for treating eye diseases. The company has taken steps to reduce its environmental impact, such as implementing a waste management program to minimize waste generation. IRIDEX Corporation (NASDAQ:IRIX) also strives to reduce energy consumption by using energy-efficient equipment and implementing energy conservation measures.
In terms of animal welfare, IRIDEX Corporation (NASDAQ:IRIX) does not conduct animal testing on any of its products and is committed to finding alternative methods of testing that do not involve animals. The company is also committed to ensuring the safety and well-being of its employees and customers by adhering to rigorous safety standards and providing training and support to ensure the safe use of its products.
IRIDEX Corporation (NASDAQ:IRIX) has an overall rating of ‘Moderate Buy,’ derived from 1 buy rating and 1 hold rating, and no sell ratings. The average price target for IRIDEX Corporation (NASDAQ:IRIX) has been set by analysts at $4.63.
According to Insider Monkey data, 2 hedge funds owned $884,000 stakes in IRIDEX Corporation (NASDAQ:IRIX) in the fourth quarter of 2022. This is up from 1 hedge fund in the preceding quarter with stakes worth $1.09 million in the company.
Like Microsoft Corporation (NASDAQ:MSFT), and Accenture Plc (NYSE:ACN), IRIDEX Corporation (NASDAQ:IRIX) is one of the best Humane stocks to buy now.
8. Alpha Pro Tech, Ltd. (NYSE:APT)
Market Capitalization as of April 13: $50.77 million
Number of Hedge Fund Holders: 3
Alpha Pro Tech, Ltd. (NYSE:APT)’s main business is producing protective apparel garments, face masks, and face shields for individuals, products, and environments. They also offer construction weatherization building products for housing markets. Alpha Pro Tech, Ltd. (NYSE:APT) produces and sells its products under its own “Alpha Pro Tech” brand name and private labels. Alpha Pro Tech has two business segments: Building Supply which includes construction weatherization products and other woven materials, and Disposable Protective Apparel, which includes head-to-toe protective garments, face masks, and face shields.
Alpha Pro Tech, Ltd. (NYSE:APT)’s shares have gained over 4.86% in the past month.
As of the fourth quarter of 2022, 3 hedge funds in Insider Monkey’s database held stakes in Alpha Pro Tech, Ltd. (NYSE:APT). The most prominent shareholder in Alpha Pro Tech, Ltd. (NYSE:APT) is Ken Griffin’s, Citadel Investment Group, with 45,733 shares valued at $183,847.
7. Great Elm Group Inc. (NASDAQ:GEG)
Market Capitalization as of April 13: $66.03 million
Number of Hedge Fund Holders: 8
Great Elm Group Inc. (NASDAQ:GEG) is a publicly-traded company that operates in the durable medical equipment and investment management sectors. The company provides respiratory care equipment and supplies, sleep study services, and medical equipment rentals. In addition, Great Elm Group Inc. (NASDAQ:GEG) manages a portfolio of long-duration and permanent capital vehicles across various alternative strategies, including credit, real estate, and specialty finance.
Great Elm Group Inc. (NASDAQ:GEG) commits to social responsibility and ethical business practices, as stated on its website. Great Elm Group aims to operate with integrity, respect, and social responsibility and to have a positive and sustainable impact on society. While the financial services industry may not directly impact the environment or animals, Great Elm Group Inc. (NASDAQ:GEG) likely complies with relevant laws and regulations related to environmental and animal protection as a responsible corporate citizen.
At the end of the fourth quarter of 2022, 8 hedge funds in the database of Insider Monkey held stakes worth $19.27 million in Great Elm Group Inc. (NASDAQ:GEG), the same as in the previous quarter, worth $20.01 million. Among these hedge funds, Becker Drapkin Management is the company’s most notable stakeholder, with 3.55 million shares worth $7.17 million.
6. Inogen Inc. (NASDAQ:INGN)
Market Capitalization as of April 13: $301.36 million
Number of Hedge Fund Holders: 13
Inogen Inc. (NASDAQ:INGN) is a medical technology company that develops and manufactures portable oxygen concentrators for patients with chronic respiratory conditions. Inogen Inc. (NASDAQ:INGN) adheres to industry standards and ethical practices, conducting business ethically and complying with laws and regulations. In addition, they follow environmental regulations and standards, reducing waste and conserving energy and water to reduce their environmental impact. In terms of animal welfare, Inogen Inc. (NASDAQ:INGN) does not conduct animal testing and requires their suppliers to meet ethical testing standards.
In January, Inogen Inc. (NASDAQ:INGN) achieved regulatory milestones in the EU and the US to support its portable oxygen concentrator products. The company received European Medical Device Regulation certification in December 2022, allowing them to sell and commercialize Inogen One G4 and Inogen One G5 portable oxygen concentrators in the EU. In addition, Inogen Inc. (NASDAQ:INGN) received FDA clearance for a new portable oxygen concentrator, Rove 4, in December, which will launch in the US in the second half of 2023.
The consensus rating for Inogen Inc. (NASDAQ:INGN) is ‘Moderate Buy,’ with 1 buy rating and 2 hold ratings. The highest analyst price target is $26, while the lowest forecast is $21. Along with Microsoft Corporation (NASDAQ:MSFT) and Accenture Plc (NYSE:ACN), Inogen Inc. (NASDAQ:INGN) is one of the best humane stocks to buy now.
According to Insider Monkey data, Inogen Inc. (NASDAQ:INGN) had 13 hedge funds as of the end of the fourth quarter of 2022. Ali Motamed’s Invenomic Capital Management is the company’s notable stakeholder in Q4 2022, with 380,254 shares worth $7.49 million.
In its Q2 2022 investor letter, Baron Funds specifically mentioned Inogen, Inc. (NASDAQ:INGN):
“Inogen, Inc. (NASDAQ:INGN), a medical device company that manufactures portable oxygen concentrators for patients with breathing issues, is a market leader, but like Advanced Energy, is constrained by chip supply, so it is dramatically under-earning versus the demand it is seeing for its products. We believe Inogen is trading at only 16 times next year’s adjusted cash flow (at lower-than-normal margins), and it is trading at only 2 times our out year cash flow estimates. Again, this is a potential multi-bagger investment over our longer-term investment horizon.
Another reason we are excited about the portfolio going forward is that we have been taking advantage of the current market dislocation to upgrade the quality of the portfolio. During the past two quarters, we have been able to purchase quality companies that were previously out of our reach due to market capitalization limitations. Because the whole market sold off to such a great extent, there were some high-quality “babies” that got thrown out with the “bathwater.”
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Disclosure: None. 10 Best Humane Stocks to Buy Now is originally published on Insider Monkey.
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