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

Insider and Institutional Ownership

12.7% 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 endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

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

Earnings and Valuation

This table compares Purple Innovation and Tempur Sealy International’s gross revenue, earnings per share 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 1.11 $151.40 million $3.20 17.55

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

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%

Analyst Ratings

This is a summary of current ratings and target prices 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 currently has a consensus price target of $8.00, indicating a potential upside of 40.60%. Tempur Sealy International has a consensus price target of $56.57, indicating a potential upside of 0.75%. Given Purple Innovation’s stronger consensus rating and higher possible upside, research analysts plainly believe Purple Innovation is more favorable than Tempur Sealy International.

Summary

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

About Purple Innovation

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.

About Tempur Sealy International

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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