Purple Innovation (NYSE: TPX) and Tempur Sealy International (NYSE:TPX) are both unclassified companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Valuation and Earnings

This table compares Purple Innovation and Tempur Sealy International’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Purple Innovation N/A N/A $800,000.00 N/A N/A
Tempur Sealy International $2.75 billion 1.14 $151.40 million $3.20 17.98

Tempur Sealy International has higher revenue and earnings than Purple Innovation.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Purple Innovation and Tempur Sealy International, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Purple Innovation 0 0 1 0 3.00
Tempur Sealy International 2 2 5 0 2.33

Purple Innovation presently has a consensus price target of $8.00, suggesting a potential upside of 45.45%. Tempur Sealy International has a consensus price target of $56.57, suggesting a potential downside of 1.67%. Given Purple Innovation’s stronger consensus rating and higher possible upside, research analysts clearly believe Purple Innovation is more favorable than Tempur Sealy International.

Risk & Volatility

Purple Innovation has a beta of -0.24, meaning that its share price is 124% less volatile than the S&P 500. Comparatively, Tempur Sealy International has a beta of 1.54, meaning that its share price is 54% more volatile than the S&P 500.

Institutional & Insider Ownership

39.3% of Purple Innovation shares are owned by institutional investors. 65.8% of Purple Innovation shares are owned by company insiders. Comparatively, 2.1% of Tempur Sealy International shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Purple Innovation and Tempur Sealy International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Purple Innovation N/A -36.07% -3.06%
Tempur Sealy International 5.21% 120.57% 5.48%

Summary

Tempur Sealy International beats Purple Innovation on 7 of the 11 factors compared between the two stocks.

Purple Innovation Company Profile

Purple Innovation, Inc. designs and manufactures mattresses, pillows, and cushions. The company markets and sells its products through direct-to-consumer and retail channels. Purple Innovation, Inc. was founded in 2010 and is headquartered in Alpine, Utah.

Tempur Sealy International Company Profile

Tempur Sealy International, Inc., together with its subsidiaries, develops, manufactures, markets, and distributes bedding products. The company operates through two segments, North America and International. It provides mattresses, foundations, and adjustable bases, as well as other products comprising pillows and other accessories under the TEMPUR, Tempur-Pedic, Sealy, and Stearns & Foster brands. The company sells its products through third party retailers, including third party distribution, hospitality, and healthcare; and company-owned stores, e-commerce, and call centers, as well as offers Cocoon by Sealy branded products through online. It is also involved in licensing its Sealy, and Stearns & Foster brands, technology, and trademarks to other manufacturers. Tempur Sealy International, Inc. was founded in 1989 and is based in Lexington, Kentucky.

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