Contrasting Purple Innovation (NASDAQ:PRPL) and Kenvue (NYSE:KVUE)

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

Valuation and Earnings

This table compares Purple Innovation and Kenvue”s gross 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	0.17	-$97.90 million	($0.78)	-0.96
Kenvue	$15.46 billion	2.02	$1.03 billion	$0.74	21.99

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

Profitability

This table compares Purple Innovation and Kenvue’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%
Kenvue	9.55%	20.26%	7.81%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Purple Innovation	1	1	0	0	1.50
Kenvue	1	12	5	1	2.32

Purple Innovation presently has a consensus price target of $1.00, suggesting a potential upside of 34.05%. Kenvue has a consensus price target of $20.17, suggesting a potential upside of 23.91%. Given Purple Innovation’s higher possible upside, analysts plainly believe Purple Innovation is more favorable than Kenvue.

Institutional and Insider Ownership

88.4% of Purple Innovation shares are owned by institutional investors. Comparatively, 97.6% of Kenvue shares are owned by institutional investors. 53.9% of Purple Innovation shares are owned by insiders. Comparatively, 0.2% of Kenvue shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Purple Innovation has a beta of 1.78, suggesting that its share price is 78% more volatile than the S&P 500. Comparatively, Kenvue has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500.

Summary

Kenvue beats Purple Innovation on 12 of the 15 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 Kenvue

Kenvue Inc. operates as a consumer health company worldwide. The company operates through three segments: Self Care, Skin Health and Beauty, and Essential Health. The Self Care segment offers cough, cold and allergy, pain care, digestive health, smoking cessation, eye care, and other products under the Tylenol, Motrin, Benadryl, Nicorette, Zarbee's, ORSLTM, Rhinocort, Calpol, and Zyrtec brands. The Skin Health and Beauty segment provides face and body care, hair, sun, and other care products under the Neutrogena, Aveeno, Dr.Ci:Labo, Le Petit Marseillais, Lubriderm, Rogaine, and OGX brand names. The Essential Health segment offers oral and baby, women's health, wound, and other care products under the Listerine, Johnson's, Band-Aid, and Stayfree, o.b., tampons, Carefree, and Desitin Diaper Rash brands. The company was incorporated in 2022 and is headquartered in Skillman, New Jersey.