Purple Innovation (NASDAQ:PRPL – Get Free Report) and BJ’s Wholesale Club (NYSE:BJ – Get Free Report) are both consumer staples companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, profitability, analyst recommendations, dividends and risk.
Risk & Volatility
Purple Innovation has a beta of 1.85, suggesting that its stock price is 85% more volatile than the S&P 500. Comparatively, BJ’s Wholesale Club has a beta of 0.31, suggesting that its stock price is 69% less volatile than the S&P 500.
Valuation and Earnings
This table compares Purple Innovation and BJ’s Wholesale Club”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Purple Innovation | $487.88 million | 0.16 | -$97.90 million | ($0.53) | -1.34 |
| BJ’s Wholesale Club | $20.50 billion | 0.58 | $534.42 million | $4.34 | 21.07 |
BJ’s Wholesale Club has higher revenue and earnings than Purple Innovation. Purple Innovation is trading at a lower price-to-earnings ratio than BJ’s Wholesale Club, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Purple Innovation and BJ’s Wholesale Club’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Purple Innovation | -12.40% | -472.12% | -13.35% |
| BJ’s Wholesale Club | 2.72% | 28.66% | 7.99% |
Insider & Institutional Ownership
88.4% of Purple Innovation shares are held by institutional investors. Comparatively, 98.6% of BJ’s Wholesale Club shares are held by institutional investors. 53.9% of Purple Innovation shares are held by company insiders. Comparatively, 1.4% of BJ’s Wholesale Club shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Purple Innovation and BJ’s Wholesale Club, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Purple Innovation | 1 | 1 | 0 | 0 | 1.50 |
| BJ’s Wholesale Club | 0 | 9 | 9 | 0 | 2.50 |
Purple Innovation presently has a consensus target price of $1.00, suggesting a potential upside of 40.79%. BJ’s Wholesale Club has a consensus target price of $111.43, suggesting a potential upside of 21.85%. Given Purple Innovation’s higher probable upside, equities analysts clearly believe Purple Innovation is more favorable than BJ’s Wholesale Club.
Summary
BJ’s Wholesale Club beats Purple Innovation on 11 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 BJ’s Wholesale Club
BJ’s Wholesale Club Holdings, Inc. engages in the operation of membership warehouse clubs. Its product categories include grocery, household and pet, television and electronics, furniture, computer and tablets, patio and outdoor living, lawn and garden, baby and kids, toys, home, health and beauty, appliances, and jewelry. The company was founded in 1984 and is headquartered in Marlborough, MA.
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