Financial Review: Purple Innovation (NASDAQ:PRPL) & Newell Brands (NASDAQ:NWL)

Purple Innovation (NASDAQ:PRPL) and Newell Brands (NASDAQ:NWL) are both small-cap consumer staples companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, profitability, valuation and risk.

Risk & Volatility

Purple Innovation has a beta of 1.52, meaning that its share price is 52% more volatile than the S&P 500. Comparatively, Newell Brands has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500.

Profitability

This table compares Purple Innovation and Newell Brands’ 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%
Newell Brands	-3.91%	8.89%	2.03%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Purple Innovation and Newell Brands, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Purple Innovation	1	2	0	0	1.67
Newell Brands	1	6	3	0	2.20

Purple Innovation currently has a consensus price target of $0.65, suggesting a potential upside of 53.45%. Newell Brands has a consensus price target of $5.06, suggesting a potential upside of 31.66%. Given Purple Innovation’s higher probable upside, equities analysts plainly believe Purple Innovation is more favorable than Newell Brands.

Valuation and Earnings

This table compares Purple Innovation and Newell Brands”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Purple Innovation	$468.73 million	0.10	-$51.41 million	($0.58)	-0.73
Newell Brands	$7.20 billion	0.23	-$285.00 million	($0.67)	-5.73

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

Institutional and Insider Ownership

88.4% of Purple Innovation shares are owned by institutional investors. Comparatively, 92.5% of Newell Brands shares are owned by institutional investors. 53.9% of Purple Innovation shares are owned by company insiders. Comparatively, 1.6% of Newell Brands shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Newell Brands beats Purple Innovation on 8 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 Newell Brands

Newell Brands Inc. engages in the design, manufacture, sourcing, and distribution of consumer and commercial products worldwide. The company operates in three segments: Home and Commercial Solutions, Learning and Development, and Outdoor and Recreation. The Commercial Solutions segment provides commercial cleaning and maintenance solution products under the Rubbermaid, Rubbermaid Commercial Products, Mapa, and Spontex brands; closet and garage organization products; hygiene systems and material handling solutions; household products, such as kitchen appliances under the Crockpot, Mr. Coffee, Oster, and Sunbeam brands; small appliances under the Breville brand name in Europe; food and home storage products under the FoodSaver, Rubbermaid, Ball, and Sistema brands; fresh preserving products; vacuum sealing products; and gourmet cookware, bakeware, and cutlery under the Calphalon brand; and home fragrance products under the WoodWick and Yankee Candle brands. The Learning and Development segment offers writing instruments, including markers and highlighters, pens, and pencils; art products; activity-based products; labeling solutions; and baby gear and infant care products under the Dymo, Elmer's, EXPO, Graco, NUK, Paper Mate, Parker, and Sharpie brands. The Outdoor and Recreation segment provides outdoor and outdoor-related products, inlcuding technical apparel and on-the-go beverageware under the Campingaz, Coleman, Contigo, and Marmot brands. It serves warehouse clubs, department and drug/grocery stores, mass merchants, home centers, commercial products distributors, specialty retailers, office superstores and supply stores, contract stationers, e-commerce retailers, and sporting goods, as well as direct to consumers online, select contract customers, and other professional customers. Newell Brands Inc. was founded in 1903 and is based in Atlanta, Georgia.