Purple Innovation (NASDAQ:PRPL) and National Vision (NASDAQ:EYE) Head-To-Head Review

Purple Innovation (NASDAQ:PRPL) and National Vision (NASDAQ:EYE) are both small-cap consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Risk and Volatility

Purple Innovation has a beta of 1.78, suggesting that its stock price is 78% more volatile than the S&P 500. Comparatively, National Vision has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500.

Institutional & Insider Ownership

88.4% of Purple Innovation shares are held by institutional investors. 53.9% of Purple Innovation shares are held by insiders. Comparatively, 2.7% of National Vision shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets for Purple Innovation and National Vision, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Purple Innovation	1	1	0	0	1.50
National Vision	1	4	6	0	2.45

Purple Innovation currently has a consensus target price of $1.00, suggesting a potential upside of 44.91%. National Vision has a consensus target price of $24.91, suggesting a potential upside of 0.68%. Given Purple Innovation’s higher probable upside, equities analysts clearly believe Purple Innovation is more favorable than National Vision.

Earnings and Valuation

This table compares Purple Innovation and National Vision”s revenue, earnings per share and valuation.

	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
National Vision	$1.82 billion	1.08	-$28.50 million	($0.03)	-824.67

National Vision has higher revenue and earnings than Purple Innovation. National Vision is trading at a lower price-to-earnings ratio than Purple Innovation, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Purple Innovation and National Vision’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%
National Vision	-0.12%	3.58%	1.52%

Summary

National Vision beats Purple Innovation on 9 of the 14 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 National Vision

National Vision Holdings, Inc., through its subsidiaries, operates as an optical retailer in the United States. The company operates in two segments, Owned & Host and Legacy. It offers eyeglasses and contact lenses, and optical accessory products; provides eye exams through its America’s Best, Eyeglass World, Vista Optical, Fred Meyer, and Vista Optical military, as well as Vision Center branded stores; and offers health maintenance organization and optometric services. National Vision Holdings, Inc. was founded in 1990 and is headquartered in Duluth, Georgia.