Purple Innovation (NASDAQ:PRPL) vs. Unilever (NYSE:UL) Financial Review

Purple Innovation (NASDAQ:PRPL) and Unilever (NYSE:UL) are both consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, dividends, analyst recommendations and valuation.

Profitability

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

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

Analyst Ratings

This is a summary of current recommendations and price targets for Purple Innovation and Unilever, as reported by MarketBeat.com.

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

Purple Innovation currently has a consensus target price of $0.65, suggesting a potential upside of 66.20%. Unilever has a consensus target price of $65.55, suggesting a potential upside of 16.84%. Given Purple Innovation’s higher possible upside, research analysts clearly believe Purple Innovation is more favorable than Unilever.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Purple Innovation	$468.73 million	0.09	-$51.41 million	($0.58)	-0.67
Unilever	$57.13 billion	2.15	$10.71 billion	N/A	N/A

Unilever has higher revenue and earnings than Purple Innovation.

Institutional and Insider Ownership

88.4% of Purple Innovation shares are owned by institutional investors. Comparatively, 9.7% of Unilever shares are owned by institutional investors. 53.9% of Purple Innovation shares are owned by insiders. Comparatively, 1.0% of Unilever shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Purple Innovation has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500. Comparatively, Unilever has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500.

Summary

Unilever beats Purple Innovation on 8 of the 12 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 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.