Purple Innovation (NASDAQ:PRPL – Get Free Report) and RH (NYSE:RH – Get Free Report) are both consumer staples companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.
Institutional and Insider Ownership
88.4% of Purple Innovation shares are owned by institutional investors. Comparatively, 90.2% of RH shares are owned by institutional investors. 53.9% of Purple Innovation shares are owned by insiders. Comparatively, 27.0% of RH shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Volatility & Risk
Purple Innovation has a beta of 1.83, suggesting that its share price is 83% more volatile than the S&P 500. Comparatively, RH has a beta of 2.1, suggesting that its share price is 110% more volatile than the S&P 500.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Purple Innovation | -12.40% | N/A | -13.35% |
| RH | 3.63% | -567.82% | 2.62% |
Valuation and Earnings
This table compares Purple Innovation and RH”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Purple Innovation | $468.73 million | 0.15 | -$97.90 million | ($0.48) | -1.36 |
| RH | $3.44 billion | 0.62 | $72.41 million | $6.31 | 17.99 |
RH has higher revenue and earnings than Purple Innovation. Purple Innovation is trading at a lower price-to-earnings ratio than RH, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Purple Innovation and RH, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Purple Innovation | 1 | 1 | 0 | 0 | 1.50 |
| RH | 4 | 9 | 7 | 0 | 2.15 |
Purple Innovation presently has a consensus price target of $0.85, indicating a potential upside of 30.11%. RH has a consensus price target of $180.20, indicating a potential upside of 58.78%. Given RH’s stronger consensus rating and higher probable upside, analysts plainly believe RH is more favorable than Purple Innovation.
Summary
RH beats Purple Innovation on 12 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 RH
RH, together with its subsidiaries, operates as a retailer in the home furnishings market. The company offers products in various categories, including furniture, lighting, textiles, bathware, décor, outdoor and garden, baby, child, and teen furnishings. It provides its products through rh.com, rhbabyandchild.com, rhteen.com, rhmodern.com, and waterworks.com online channels, as well as operates RH Galleries, RH outlet stores, RH Guesthouse, and Waterworks showrooms in the United States, Canada, the United Kingdom, and Germany. The company was formerly known as Restoration Hardware Holdings, Inc. and changed its name to RH in January 2017. RH was incorporated in 2011 and is headquartered in Corte Madera, California.
Receive News & Ratings for Purple Innovation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Purple Innovation and related companies with MarketBeat.com's FREE daily email newsletter.
