Financial Review: PURPLE INNOVATION (NASDAQ:PRPL) and Procter & Gamble (NYSE:PG)

PURPLE INNOVATION (NASDAQ:PRPL) and Procter & Gamble (NYSE:PG) are both consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, dividends, risk, profitability and institutional ownership.

Analyst Ratings

This is a summary of recent recommendations for PURPLE INNOVATION and Procter & Gamble, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PURPLE INNOVATION	0	2	0	0	2.00
Procter & Gamble	0	8	12	2	2.73

PURPLE INNOVATION currently has a consensus price target of $1.25, suggesting a potential upside of 92.28%. Procter & Gamble has a consensus price target of $176.84, suggesting a potential upside of 13.60%. Given PURPLE INNOVATION’s higher probable upside, equities research analysts plainly believe PURPLE INNOVATION is more favorable than Procter & Gamble.

Earnings & Valuation

This table compares PURPLE INNOVATION and Procter & Gamble”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PURPLE INNOVATION	$487.88 million	0.14	-$97.90 million	($0.62)	-1.05
Procter & Gamble	$84.04 billion	4.34	$14.88 billion	$6.30	24.71

Procter & Gamble has higher revenue and earnings than PURPLE INNOVATION. PURPLE INNOVATION is trading at a lower price-to-earnings ratio than Procter & Gamble, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares PURPLE INNOVATION and Procter & Gamble’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PURPLE INNOVATION	-14.16%	-145.52%	-13.27%
Procter & Gamble	18.46%	32.67%	13.45%

Risk & Volatility

PURPLE INNOVATION has a beta of 1.51, meaning that its share price is 51% more volatile than the S&P 500. Comparatively, Procter & Gamble has a beta of 0.4, meaning that its share price is 60% less volatile than the S&P 500.

Insider & Institutional Ownership

88.4% of PURPLE INNOVATION shares are owned by institutional investors. Comparatively, 65.8% of Procter & Gamble shares are owned by institutional investors. 53.9% of PURPLE INNOVATION shares are owned by company insiders. Comparatively, 0.2% of Procter & Gamble shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Procter & Gamble beats PURPLE INNOVATION on 11 of the 15 factors compared between the two stocks.

About PURPLE INNOVATION

Purple Innovation, Inc. designs and manufactures sleep and other products in the United States and internationally. The company offers mattresses, pillows, cushions, bases, sheets, platforms, adjustable bases, mattress protectors, foundations, blankets, duvets, duvet covers, seat cushions, and pet beds under the Purple brand. It markets and sells its products through its e-commerce online channels, retail brick-and-mortar wholesale partners, third-party online retailers, and Purple showrooms, as well as through its website, Purple.com. The company was founded in 2010 and is headquartered in Lehi, Utah.

About Procter & Gamble

Procter & Gamble Co. engages in the provision of branded consumer packaged goods. It operates through the following segments: Beauty, Grooming, Health Care, Fabric and Home Care, and Baby, Feminine and Family Care. The Beauty segment offers hair, skin, and personal care. The Grooming segment consists of shave care like female and male blades and razors, pre and post shave products, and appliances. The Health Care segment includes oral care products like toothbrushes, toothpaste, and personal health care such as gastrointestinal, rapid diagnostics, respiratory, and vitamins, minerals, and supplements. The Fabric and Home care segment consists of fabric enhancers, laundry additives and detergents, and air, dish, and surface care. The Baby, Feminine and Family Care segment sells baby wipes, diapers, and pants, adult incontinence, feminine care, paper towels, tissues, and toilet paper. The company was founded by William Procter and James Gamble in 1837 and is headquartered in Cincinnati, OH.