Critical Contrast: Unilever (NYSE:UL) versus Purple Innovation (NASDAQ:PRPL)

Unilever (NYSE:UL) and Purple Innovation (NASDAQ:PRPL) are both consumer staples 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.

Earnings & Valuation

This table compares Unilever and Purple Innovation”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Unilever	$50.50 billion	2.54	$10.71 billion	N/A	N/A
Purple Innovation	$460.28 million	0.09	-$51.41 million	($0.58)	-0.68

Unilever has higher revenue and earnings than Purple Innovation.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Unilever	3	5	2	2	2.25
Purple Innovation	1	2	0	0	1.67

Unilever presently has a consensus price target of $65.55, suggesting a potential upside of 11.78%. Purple Innovation has a consensus price target of $0.65, suggesting a potential upside of 64.77%. Given Purple Innovation’s higher possible upside, analysts clearly believe Purple Innovation is more favorable than Unilever.

Risk & Volatility

Unilever has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500. Comparatively, Purple Innovation has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500.

Institutional & Insider Ownership

9.7% of Unilever shares are owned by institutional investors. Comparatively, 88.4% of Purple Innovation shares are owned by institutional investors. 1.0% of Unilever shares are owned by company insiders. Comparatively, 53.9% of Purple Innovation 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 Unilever and Purple Innovation’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Unilever	N/A	N/A	N/A
Purple Innovation	-13.65%	N/A	-12.25%

Summary

Unilever beats Purple Innovation on 8 of the 12 factors compared between the two stocks.

About Unilever

Unilever PLC operates as a fast-moving consumer goods company in the Asia Pacific, Africa, the Americas, and Europe. It operates through five segments: Beauty & Wellbeing, Personal Care, Home Care, Nutrition, and Ice Cream. The Beauty & Wellbeing segment engages in the sale of hair care products, such as shampoo, conditioner, and styling; skin care products including face, hand, and body moisturizer; and prestige beauty and health & wellbeing products consist of the vitamins, minerals, and supplements. The Personal Care segment offers skin cleansing products comprising soap and shower; deodorants; and oral care products, such as toothpaste, toothbrush, and mouthwash products. The Home Care segment is involved in the sale of fabric care products, including washing powders and liquids, and rinse conditioners; and fabric enhancers, and home and hygiene products. The Nutrition segment provides dressings products, such as mayonnaise and ketchup; sells scratch cooking aids consist of soups, bouillons, and seasonings; plant-based meat; beverages; and functional nutrition products, including Horlicks and Boost, as well as tea products. The Ice Cream segment offers ice cream products including in-home and out-of-home ice creams. The company provides its products under the AXE, Ben & Jerry's, Cif, Clear, Closeup, Comfort, Cornetto, Dermalogica, Domestos, Dove, Dove Men+Care, Hellmann's, Horlicks, Knorr, LUX, Lifebuoy, Liquid I.V., Magnum, Nutrafol, OMO, Paula's Choice, Pepsodent, Pond's, Rexona, Rexona, Sunlight, Sunsilk, Surf, TRESemmé, Vaseline, Wall's, Breyers, and Yasso brand names. Unilever PLC was founded in 1860 and is headquartered in London, the United Kingdom.

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.