Purple Innovation (NASDAQ:PRPL) and Cavco Industries (NASDAQ:CVCO) Financial Comparison

Cavco Industries (NASDAQ:CVCO) and Purple Innovation (NASDAQ:PRPL) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, valuation and profitability.

Insider and Institutional Ownership

95.6% of Cavco Industries shares are held by institutional investors. Comparatively, 88.4% of Purple Innovation shares are held by institutional investors. 1.7% of Cavco Industries shares are held by insiders. Comparatively, 54.0% of Purple Innovation shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cavco Industries	$2.24 billion	1.85	$190.55 million	$22.98	23.45
Purple Innovation	$468.73 million	0.03	-$51.41 million	($11.24)	-0.32

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

Analyst Ratings

This is a summary of recent recommendations for Cavco Industries and Purple Innovation, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cavco Industries	1	2	1	1	2.40
Purple Innovation	1	2	0	0	1.67

Cavco Industries presently has a consensus target price of $700.00, suggesting a potential upside of 29.92%. Purple Innovation has a consensus target price of $16.25, suggesting a potential upside of 347.66%. Given Purple Innovation’s higher possible upside, analysts clearly believe Purple Innovation is more favorable than Cavco Industries.

Volatility and Risk

Cavco Industries has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500. Comparatively, Purple Innovation has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cavco Industries	7.89%	16.51%	12.17%
Purple Innovation	-10.74%	N/A	-10.89%

Summary

Cavco Industries beats Purple Innovation on 12 of the 15 factors compared between the two stocks.

About Cavco Industries

Cavco Industries, Inc. designs, produces, and retails factory-built homes primarily in the United States. It operates in two segments, Factory-Built Housing and Financial Services. The company markets its factory-built homes under the Cavco, Fleetwood, Palm Harbor, Nationwide, Fairmont, Friendship, Chariot Eagle, Destiny, Commodore, Colony, Pennwest, R-Anell, Manorwood, MidCountry, and Solitaire brands. It produces park model RVs; vacation cabins; and factory-built commercial structures, including apartment buildings, condominiums, hotels, workforce housing, schools, and housing for the United States military troops. In addition, the company produces various modular homes, which include single and multi-section ranch, split-level, and Cape Cod style homes, as well as two- and three-story homes, and multi-family units. Further, it provides conforming and non-conforming mortgages and home-only loans to purchasers of various brands of factory-built homes sold by company-owned retail stores, as well as various independent distributors, builders, communities, and developers. Additionally, the company offers property and casualty insurance to owners of manufactured homes. It distributes its products through a network of independent and company-owned retailers, planned community operators, and residential developers. Cavco Industries, Inc. was founded in 1965 and is headquartered in Phoenix, Arizona.

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.