BBB Foods (NYSE:TBBB – Get Free Report) and Purple Innovation (NASDAQ:PRPL – Get Free Report) are both consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, earnings, risk, valuation, profitability and analyst recommendations.
Profitability
This table compares BBB Foods and Purple Innovation’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| BBB Foods | -2.61% | -44.56% | -7.47% |
| Purple Innovation | -12.40% | -472.12% | -13.35% |
Earnings and Valuation
This table compares BBB Foods and Purple Innovation”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| BBB Foods | $72.53 billion | 0.05 | $18.36 million | ($0.84) | -38.68 |
| Purple Innovation | $487.88 million | 0.17 | -$97.90 million | ($0.53) | -1.48 |
BBB Foods has higher revenue and earnings than Purple Innovation. BBB Foods is trading at a lower price-to-earnings ratio than Purple Innovation, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
8.4% of BBB Foods shares are owned by institutional investors. Comparatively, 88.4% of Purple Innovation shares are owned by institutional investors. 53.9% of Purple Innovation shares are owned by company 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.
Analyst Recommendations
This is a breakdown of current ratings for BBB Foods and Purple Innovation, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| BBB Foods | 1 | 3 | 3 | 0 | 2.29 |
| Purple Innovation | 1 | 1 | 0 | 0 | 1.50 |
BBB Foods currently has a consensus target price of $34.80, indicating a potential upside of 7.10%. Purple Innovation has a consensus target price of $1.00, indicating a potential upside of 27.49%. Given Purple Innovation’s higher possible upside, analysts clearly believe Purple Innovation is more favorable than BBB Foods.
Risk & Volatility
BBB Foods has a beta of -0.15, suggesting that its stock price is 115% less volatile than the S&P 500. Comparatively, Purple Innovation has a beta of 1.85, suggesting that its stock price is 85% more volatile than the S&P 500.
About BBB Foods
BBB Foods Inc., through its subsidiaries, operates a chain of grocery retail stores in Mexico. It offers household cleaning, personal hyenine, cosmetics and beauty, pharmacy, and general merchandise products, as well as jellies and desserts, foods and drinks, pet supplies, coffee, tea, chocolates, breads, dry and frozen foods, snacks and sweets, and toilet papers and napkins. The company also provides branded, private label, and spot products. It serves low-to-middle income households through online channels. BBB Foods Inc. was incorporated in 2004 and is headquartered in Mexico City, Mexico.
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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