Contrasting Purple Innovation (NASDAQ:PRPL) and Green Brick Partners (NASDAQ:GRBK)

Green Brick Partners (NASDAQ:GRBK) and Purple Innovation (NASDAQ:PRPL) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, earnings, analyst recommendations and dividends.

Insider and Institutional Ownership

78.2% of Green Brick Partners shares are held by institutional investors. Comparatively, 88.4% of Purple Innovation shares are held by institutional investors. 30.3% of Green Brick Partners shares are held by insiders. Comparatively, 54.0% of Purple Innovation shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets for Green Brick Partners and Purple Innovation, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Green Brick Partners	0	2	0	0	2.00
Purple Innovation	1	2	0	0	1.67

Purple Innovation has a consensus price target of $16.25, indicating a potential upside of 326.51%. Given Purple Innovation’s higher possible upside, analysts plainly believe Purple Innovation is more favorable than Green Brick Partners.

Volatility and Risk

Green Brick Partners has a beta of 1.8, suggesting that its stock price is 80% more volatile than the S&P 500. Comparatively, Purple Innovation has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500.

Earnings & Valuation

This table compares Green Brick Partners and Purple Innovation”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Green Brick Partners	$2.03 billion	1.51	$284.63 million	$6.64	10.73
Purple Innovation	$468.73 million	0.04	-$51.41 million	($11.24)	-0.34

Green Brick Partners has higher revenue and earnings than Purple Innovation. Purple Innovation is trading at a lower price-to-earnings ratio than Green Brick Partners, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Green Brick Partners and Purple Innovation’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Green Brick Partners	17.70%	25.35%	17.29%
Purple Innovation	-10.74%	N/A	-10.89%

Summary

Green Brick Partners beats Purple Innovation on 10 of the 13 factors compared between the two stocks.

About Green Brick Partners

Green Brick Partners, Inc. is a diversified homebuilding and land development company in the United States. The company operates through three segments: Builder operations Central, Builder operations Southeast, and Land Development. The Builder operations Central segment operates builders in Texas; and the closing and delivery of homes. The Builder operations Southeast operates builders in Georgia and Florida. The Land Development segment acquires land for the development of residential lots that are transferred to our controlled builders or sold to third party homebuilders. It also provides financial services platform, including mortgage and title services. In addition, the company is engaged in all aspects of the homebuilding process, including land acquisition and development, entitlements, design, construction, marketing, and sales for its residential neighborhoods and master-planned communities. Green Brick Partners, Inc. was incorporated in 2006 and is based in Plano, 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.