Contrasting Purple Innovation (PRPL) and Sleep Number (SNBR)

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Purple Innovation (NASDAQ: SNBR) and Sleep Number (NASDAQ:SNBR) are both small-cap unclassified companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, earnings, profitability, valuation, risk, institutional ownership and dividends.

Volatility & Risk

Purple Innovation has a beta of -0.24, meaning that its share price is 124% less volatile than the S&P 500. Comparatively, Sleep Number has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Purple Innovation and Sleep Number, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Purple Innovation 0 0 1 0 3.00
Sleep Number 1 4 1 0 2.00

Purple Innovation presently has a consensus price target of $8.00, indicating a potential upside of 41.34%. Sleep Number has a consensus price target of $34.60, indicating a potential upside of 11.18%. Given Purple Innovation’s stronger consensus rating and higher probable upside, equities analysts clearly believe Purple Innovation is more favorable than Sleep Number.

Earnings & Valuation

This table compares Purple Innovation and Sleep Number’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Purple Innovation N/A N/A $800,000.00 N/A N/A
Sleep Number $1.44 billion 0.75 $65.07 million $1.49 20.89

Sleep Number has higher revenue and earnings than Purple Innovation.

Profitability

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

Net Margins Return on Equity Return on Assets
Purple Innovation N/A 7.71% 0.57%
Sleep Number 4.47% 115.80% 12.83%

Insider and Institutional Ownership

37.8% of Purple Innovation shares are held by institutional investors. 65.8% of Purple Innovation shares are held by insiders. Comparatively, 4.3% of Sleep Number shares are held by 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

Sleep Number beats Purple Innovation on 6 of the 10 factors compared between the two stocks.

About Purple Innovation

Purple Innovation, Inc. designs and manufactures mattresses, pillows, and cushions. The company markets and sells its products through direct-to-consumer and retail channels. Purple Innovation, Inc. was founded in 2010 and is headquartered in Alpine, Utah.

About Sleep Number

Sleep Number Corporation, together with its subsidiaries, provides sleep solutions and services in the United States. It designs, manufactures, markets, retails, and services beds, bases, and bedding accessories under the Sleep Number name. The company also offers adjustable bases under the FlextFit name; and pillows and sheets, as well as other bedding products, including mattresses, box springs, and foundations under the Sleep Number name. The company sells its products directly to consumers through retail, online, and phone, as well as through wholesale. As of December 30, 2017, it operated approximately 556 Sleep Number retail stores in 50 states. The company was formerly known as Select Comfort Corporation and changed its name to Sleep Number Corporation in November 2017. Sleep Number Corporation was founded in 1987 and is headquartered in Minneapolis, Minnesota.

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