Purple Innovation (NASDAQ:PRPL) and Tempur Sealy International (NYSE:TPX) are both mid-cap consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, profitability, risk and valuation.
Analyst Ratings
This is a summary of current recommendations for Purple Innovation and Tempur Sealy International, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Purple Innovation | 0 | 0 | 10 | 0 | 3.00 |
Tempur Sealy International | 0 | 3 | 6 | 1 | 2.80 |
Purple Innovation presently has a consensus target price of $35.6667, indicating a potential upside of 7.17%. Tempur Sealy International has a consensus target price of $35.2045, indicating a potential downside of 9.85%. Given Purple Innovation's stronger consensus rating and higher possible upside, research analysts clearly believe Purple Innovation is more favorable than Tempur Sealy International.
Volatility & Risk
Purple Innovation has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500. Comparatively, Tempur Sealy International has a beta of 2.02, suggesting that its stock price is 102% more volatile than the S&P 500.
Institutional and Insider Ownership
90.2% of Purple Innovation shares are held by institutional investors. Comparatively, 23.0% of Tempur Sealy International shares are held by institutional investors. 75.1% of Purple Innovation shares are held by insiders. Comparatively, 3.1% of Tempur Sealy International shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Purple Innovation and Tempur Sealy International's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Purple Innovation | 0.28% | 363.58% | 24.46% |
Tempur Sealy International | 7.17% | 106.94% | 10.39% |
Earnings and Valuation
This table compares Purple Innovation and Tempur Sealy International's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Purple Innovation | $428.36 million | 5.18 | $-4,030,000.00 | $1.42 | 23.41 |
Tempur Sealy International | $3.11 billion | 2.53 | $189.50 million | $1.00 | 38.99 |
Tempur Sealy International has higher revenue and earnings than Purple Innovation. Purple Innovation is trading at a lower price-to-earnings ratio than Tempur Sealy International, indicating that it is currently the more affordable of the two stocks.
Summary
Purple Innovation beats Tempur Sealy International on 9 of the 15 factors compared between the two stocks.