Purple Innovation (NASDAQ:PRPL – Get Free Report) and Sadot Group (NASDAQ:SDOT – Get Free Report) are both small-cap consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.
Risk and Volatility
Purple Innovation has a beta of 1.84, suggesting that its stock price is 84% more volatile than the S&P 500. Comparatively, Sadot Group has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500.
Profitability
This table compares Purple Innovation and Sadot Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Purple Innovation | -12.40% | -472.12% | -13.35% |
| Sadot Group | -2.81% | -41.55% | -11.56% |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Purple Innovation | $487.88 million | 0.15 | -$97.90 million | ($0.53) | -1.30 |
| Sadot Group | $700.94 million | 0.01 | $3.99 million | ($14.98) | -0.21 |
Sadot Group has higher revenue and earnings than Purple Innovation. Purple Innovation is trading at a lower price-to-earnings ratio than Sadot Group, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
88.4% of Purple Innovation shares are held by institutional investors. Comparatively, 13.3% of Sadot Group shares are held by institutional investors. 53.9% of Purple Innovation shares are held by insiders. Comparatively, 6.4% of Sadot Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Purple Innovation and Sadot Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Purple Innovation | 1 | 1 | 0 | 0 | 1.50 |
| Sadot Group | 1 | 0 | 0 | 0 | 1.00 |
Purple Innovation presently has a consensus target price of $1.00, indicating a potential upside of 45.45%. Given Purple Innovation’s stronger consensus rating and higher probable upside, equities analysts clearly believe Purple Innovation is more favorable than Sadot Group.
Summary
Purple Innovation beats Sadot Group on 7 of the 13 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 Sadot Group
Sadot Group Inc. provides supply chain solutions that address growing food security challenges worldwide. The company is involved in the agri-commodity sourcing and trading operations for food/feed products, such as soybean meal, wheat, and corn; and farm operations, including producing grains and tree crops in Southern Africa. The company is also involved in the food service operations across the United States. The company was formerly known as Muscle Maker Inc. and changed its name to Sadot Group Inc. Sadot Group Inc. was incorporated in 2019 and is headquartered in Fort Worth, Texas.
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