Analyzing Kenvue (NYSE:KVUE) and PURPLE INNOVATION (NASDAQ:PRPL)

Kenvue (NYSE:KVUE) and PURPLE INNOVATION (NASDAQ:PRPL) are both consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, valuation, analyst recommendations, earnings, institutional ownership and profitability.

Valuation & Earnings

This table compares Kenvue and PURPLE INNOVATION”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kenvue	$15.46 billion	1.80	$1.03 billion	$0.74	19.57
PURPLE INNOVATION	$487.88 million	0.19	-$97.90 million	($0.78)	-1.11

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Kenvue and PURPLE INNOVATION, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kenvue	1	10	6	1	2.39
PURPLE INNOVATION	1	1	0	0	1.50

Kenvue presently has a consensus price target of $20.90, suggesting a potential upside of 44.29%. PURPLE INNOVATION has a consensus price target of $1.00, suggesting a potential upside of 15.87%. Given Kenvue’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Kenvue is more favorable than PURPLE INNOVATION.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kenvue	9.37%	20.06%	7.78%
PURPLE INNOVATION	-18.43%	-472.12%	-13.20%

Insider and Institutional Ownership

97.6% of Kenvue shares are held by institutional investors. Comparatively, 88.4% of PURPLE INNOVATION shares are held by institutional investors. 0.2% of Kenvue shares are held by insiders. Comparatively, 53.9% of PURPLE INNOVATION shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Kenvue has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500. Comparatively, PURPLE INNOVATION has a beta of 1.71, suggesting that its stock price is 71% more volatile than the S&P 500.

Summary

Kenvue beats PURPLE INNOVATION on 13 of the 15 factors compared between the two stocks.

About Kenvue

Kenvue Inc. operates as a consumer health company worldwide. The company operates through three segments: Self Care, Skin Health and Beauty, and Essential Health. The Self Care segment offers cough, cold and allergy, pain care, digestive health, smoking cessation, eye care, and other products under the Tylenol, Motrin, Benadryl, Nicorette, Zarbee's, ORSLTM, Rhinocort, Calpol, and Zyrtec brands. The Skin Health and Beauty segment provides face and body care, hair, sun, and other care products under the Neutrogena, Aveeno, Dr.Ci:Labo, Le Petit Marseillais, Lubriderm, Rogaine, and OGX brand names. The Essential Health segment offers oral and baby, women's health, wound, and other care products under the Listerine, Johnson's, Band-Aid, and Stayfree, o.b., tampons, Carefree, and Desitin Diaper Rash brands. The company was incorporated in 2022 and is headquartered in Skillman, New Jersey.

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.