Head-To-Head Survey: Purple Innovation (NASDAQ:PRPL) & Colgate-Palmolive (NYSE:CL)

Purple Innovation (NASDAQ:PRPL) and Colgate-Palmolive (NYSE:CL) are both consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, institutional ownership, risk, dividends, earnings and profitability.

Volatility & Risk

Purple Innovation has a beta of 1.71, indicating that its stock price is 71% more volatile than the S&P 500. Comparatively, Colgate-Palmolive has a beta of 0.34, indicating that its stock price is 66% less volatile than the S&P 500.

Insider and Institutional Ownership

88.4% of Purple Innovation shares are owned by institutional investors. Comparatively, 80.4% of Colgate-Palmolive shares are owned by institutional investors. 53.9% of Purple Innovation shares are owned by insiders. Comparatively, 0.4% of Colgate-Palmolive shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Purple Innovation and Colgate-Palmolive, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Purple Innovation	1	1	0	0	1.50
Colgate-Palmolive	1	5	8	0	2.50

Purple Innovation presently has a consensus target price of $1.00, indicating a potential upside of 14.63%. Colgate-Palmolive has a consensus target price of $92.21, indicating a potential upside of 19.78%. Given Colgate-Palmolive’s stronger consensus rating and higher probable upside, analysts plainly believe Colgate-Palmolive is more favorable than Purple Innovation.

Profitability

This table compares Purple Innovation and Colgate-Palmolive’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Purple Innovation	-18.43%	-472.12%	-13.20%
Colgate-Palmolive	14.55%	377.63%	17.86%

Valuation & Earnings

This table compares Purple Innovation and Colgate-Palmolive”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	$487.88 million	0.19	-$97.90 million	($0.78)	-1.12
Colgate-Palmolive	$20.10 billion	3.10	$2.89 billion	$3.56	21.63

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

Summary

Colgate-Palmolive beats Purple Innovation on 11 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 Colgate-Palmolive

Colgate-Palmolive Company, together with its subsidiaries, manufactures and sells consumer products in the United States and internationally. It operates through two segments: Oral, Personal and Home Care; and Pet Nutrition. The Oral, Personal and Home Care segment offers toothpaste, toothbrushes, mouthwash, bar and liquid hand soaps, shower gels, shampoos, conditioners, deodorants and antiperspirants, skin health products, dishwashing detergents, fabric conditioners, household cleaners, and other related items. This segment markets and sells its products under various brands, which include Colgate, Darlie, elmex, hello, meridol, Sorriso, Tom's of Maine, Irish Spring, Palmolive, Protex, Sanex, Softsoap, Lady Speed Stick, Speed Stick, EltaMD, Filorga, PCA SKIN, Ajax, Axion, Fabuloso, Murphy, Suavitel, and Soupline to a range of traditional and eCommerce retailers, wholesalers, and distributors. It includes pharmaceutical products for dentists and other oral health professionals. Its Pet Nutrition segment offers pet nutrition products for everyday nutritional needs under the Hill's Science Diet brand; and a range of therapeutic pet products to help nutritionally support dogs and cats in different stages of health under the Hill's Prescription Diet brand. This segment markets and sells its products through pet supply retailers, veterinarians, and eCommerce retailers. Colgate-Palmolive Company was founded in 1806 and is headquartered in New York, New York.