Revlon (NYSE:REV) and Purple Innovation (NASDAQ:PRPL) are both consumer staples companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, earnings, analyst recommendations and valuation.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Revlon and Purple Innovation, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Revlon | 0 | 0 | 0 | 0 | N/A |
Purple Innovation | 0 | 0 | 10 | 0 | 3.00 |
Purple Innovation has a consensus price target of $37.4444, suggesting a potential upside of 1.78%. Given Purple Innovation's higher possible upside, analysts clearly believe Purple Innovation is more favorable than Revlon.
Profitability
This table compares Revlon and Purple Innovation's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Revlon | -18.18% | N/A | -5.28% |
Purple Innovation | 0.28% | 363.58% | 24.46% |
Valuation & Earnings
This table compares Revlon and Purple Innovation's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Revlon | $2.42 billion | 0.26 | $-157,700,000.00 | ($2.45) | -4.62 |
Purple Innovation | $428.36 million | 5.28 | $-4,030,000.00 | $1.42 | 25.91 |
Purple Innovation has lower revenue, but higher earnings than Revlon. Revlon is trading at a lower price-to-earnings ratio than Purple Innovation, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
11.5% of Revlon shares are owned by institutional investors. Comparatively, 90.2% of Purple Innovation shares are owned by institutional investors. 87.4% of Revlon shares are owned by company insiders. Comparatively, 75.1% of Purple Innovation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Volatility & Risk
Revlon has a beta of 2.71, indicating that its stock price is 171% more volatile than the S&P 500. Comparatively, Purple Innovation has a beta of 1.34, indicating that its stock price is 34% more volatile than the S&P 500.
Summary
Purple Innovation beats Revlon on 9 of the 13 factors compared between the two stocks.