Critical Comparison: Purple Innovation (NASDAQ:PRPL) vs. Ollie’s Bargain Outlet (NASDAQ:OLLI)

Purple Innovation (NASDAQ:PRPL) and Ollie’s Bargain Outlet (NASDAQ:OLLI) are both consumer staples companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, profitability, valuation, earnings and risk.

Profitability

This table compares Purple Innovation and Ollie’s Bargain Outlet’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%
Ollie’s Bargain Outlet	8.59%	12.27%	8.05%

Earnings & Valuation

This table compares Purple Innovation and Ollie’s Bargain Outlet”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	0.15	-$97.90 million	($0.62)	-1.12
Ollie’s Bargain Outlet	$2.27 billion	3.57	$199.76 million	$3.25	40.66

Ollie’s Bargain Outlet has higher revenue and earnings than Purple Innovation. Purple Innovation is trading at a lower price-to-earnings ratio than Ollie’s Bargain Outlet, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Purple Innovation has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500. Comparatively, Ollie’s Bargain Outlet has a beta of 0.41, meaning that its stock price is 59% less volatile than the S&P 500.

Insider & Institutional Ownership

88.4% of Purple Innovation shares are held by institutional investors. 53.9% of Purple Innovation shares are held by insiders. Comparatively, 0.8% of Ollie’s Bargain Outlet shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for Purple Innovation and Ollie’s Bargain Outlet, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Purple Innovation	0	2	0	0	2.00
Ollie’s Bargain Outlet	0	5	9	0	2.64

Purple Innovation currently has a consensus price target of $1.25, suggesting a potential upside of 79.24%. Ollie’s Bargain Outlet has a consensus price target of $125.21, suggesting a potential downside of 5.26%. Given Purple Innovation’s higher probable upside, equities research analysts clearly believe Purple Innovation is more favorable than Ollie’s Bargain Outlet.

Summary

Ollie’s Bargain Outlet beats Purple Innovation on 10 of the 14 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 Ollie’s Bargain Outlet

Ollie’s Bargain Outlet Holdings, Inc. is a holding company, which engages in the retail of closeouts, excess inventory, and salvage merchandise. It offers overstocks, package changes, manufacturer refurbished goods, and irregulars. The company’s products include housewares, food, books and stationery, bed and bath, floor coverings, electronics and toys. Ollie’s Bargain Outlet Holdings was founded by Mark Butler, Mort Bernstein, Oliver Rosenberg and Harry Coverman on July 29, 1982, and is headquartered in Harrisburg, PA.