Contrasting Hermes International (OTCMKTS:HESAY) & Purple Innovation (NASDAQ:PRPL)

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

Profitability

This table compares Purple Innovation and Hermes International’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%
Hermes International	N/A	N/A	N/A

Institutional and Insider Ownership

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 hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Purple Innovation	$487.88 million	0.17	-$97.90 million	($0.53)	-1.48
Hermes International	$16.42 billion	16.00	$4.98 billion	N/A	N/A

Hermes International has higher revenue and earnings than Purple Innovation.

Analyst Recommendations

This is a summary of current ratings for Purple Innovation and Hermes International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Purple Innovation	1	1	0	0	1.50
Hermes International	0	4	0	1	2.40

Purple Innovation presently has a consensus target price of $1.00, suggesting a potential upside of 27.91%. Given Purple Innovation’s higher possible upside, analysts clearly believe Purple Innovation is more favorable than Hermes International.

Summary

Hermes International beats Purple Innovation on 8 of the 11 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 Hermes International

Hermès International Société en commandite par actions engages in the production, wholesale, and retail of various goods. The company offers leather goods and saddlery, such as bags for men and women, travel articles, small leather goods and accessories, saddles, bridles, and a full range of equestrian products and clothing; ready-to-wear garments for men and women; and accessories, including jewelry, belts, hats, gloves, the Internet of Things products, and shoes. It also provides silk and textiles for men and women; art of living and tableware products; perfumes; and watches. In addition, the company is also involved in weaving, engraving, printing, dyeing, finishing, and producing textiles; and purchasing, tanning, dyeing, finishing, and selling precious leathers. It sells its products through a network of stores worldwide. The company also sells watches, perfumes, and tableware through a network of specialized stores. Hermès International Société en commandite par actions was founded in 1837 and is based in Paris, France. Hermès International Société en commandite par actions operates as a subsidiary of H51 SAS.