Sadot Group (NASDAQ:SDOT – Get Free Report) and Purple Innovation (NASDAQ:PRPL – Get Free Report) are both small-cap consumer staples companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, valuation, analyst recommendations and dividends.
Profitability
This table compares Sadot Group and Purple Innovation’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sadot Group | -2.81% | -41.55% | -11.56% |
| Purple Innovation | -12.40% | -472.12% | -13.35% |
Insider and Institutional Ownership
13.3% of Sadot Group shares are held by institutional investors. Comparatively, 88.4% of Purple Innovation shares are held by institutional investors. 6.4% of Sadot Group shares are held by insiders. Comparatively, 53.9% of Purple Innovation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sadot Group | $700.94 million | 0.01 | $3.99 million | ($14.98) | -0.20 |
| Purple Innovation | $487.88 million | 0.15 | -$97.90 million | ($0.53) | -1.25 |
Sadot Group has higher revenue and earnings than Purple Innovation. Purple Innovation is trading at a lower price-to-earnings ratio than Sadot Group, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings for Sadot Group and Purple Innovation, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sadot Group | 1 | 0 | 0 | 0 | 1.00 |
| Purple Innovation | 1 | 1 | 0 | 0 | 1.50 |
Purple Innovation has a consensus price target of $1.00, indicating a potential upside of 50.83%. Given Purple Innovation’s stronger consensus rating and higher possible upside, analysts plainly believe Purple Innovation is more favorable than Sadot Group.
Risk and Volatility
Sadot Group has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500. Comparatively, Purple Innovation has a beta of 1.86, meaning that its stock price is 86% more volatile than the S&P 500.
Summary
Purple Innovation beats Sadot Group on 7 of the 13 factors compared between the two stocks.
About Sadot Group
Sadot Group Inc. provides supply chain solutions that address growing food security challenges worldwide. The company is involved in the agri-commodity sourcing and trading operations for food/feed products, such as soybean meal, wheat, and corn; and farm operations, including producing grains and tree crops in Southern Africa. The company is also involved in the food service operations across the United States. The company was formerly known as Muscle Maker Inc. and changed its name to Sadot Group Inc. Sadot Group Inc. was incorporated in 2019 and is headquartered in Fort Worth, Texas.
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.
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