Purple Innovation (NASDAQ:PRPL) and Victoria (OTCMKTS:VCCTF) Critical Contrast
by Kim Johansen · The Markets DailyVictoria (OTCMKTS:VCCTF – Get Free Report) and Purple Innovation (NASDAQ:PRPL – Get Free Report) are both consumer cyclical companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, earnings, profitability, analyst recommendations, institutional ownership, valuation and dividends.
Profitability
This table compares Victoria and Purple Innovation’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Victoria | N/A | N/A | N/A |
Purple Innovation | -19.86% | -72.81% | -18.09% |
Institutional and Insider Ownership
88.4% of Purple Innovation shares are owned by institutional investors. 54.3% of Purple Innovation shares are owned by company 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.
Valuation and Earnings
This table compares Victoria and Purple Innovation”s revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Victoria | N/A | N/A | N/A | N/A | N/A |
Purple Innovation | $526.24 million | 0.18 | -$120.76 million | ($1.34) | -0.67 |
Victoria has higher earnings, but lower revenue than Purple Innovation.
Analyst Ratings
This is a summary of recent ratings and price targets for Victoria and Purple Innovation, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Victoria | 0 | 0 | 0 | 0 | N/A |
Purple Innovation | 0 | 3 | 3 | 0 | 2.50 |
Purple Innovation has a consensus target price of $2.53, suggesting a potential upside of 182.09%. Given Purple Innovation’s higher possible upside, analysts clearly believe Purple Innovation is more favorable than Victoria.
Summary
Purple Innovation beats Victoria on 5 of the 8 factors compared between the two stocks.
About Victoria
Victoria PLC, together with its subsidiaries, designs, manufactures, and distributes flooring products primarily in the United Kingdom, Spain, Italy, the Netherlands, Germany, Belgium, Turkey, the United States, and Australia. The company operates through four segments: UK & Europe Soft Flooring, UK & Europe Ceramic Tiles, Australia, and North America. It offers a range of wool and synthetic broadloom carpets, ceramic and porcelain tiles, flooring underlays, luxury vinyl tiles (LVT), hardwood flooring products, artificial grass, carpet tiles, and flooring accessories. The company also offers logistics services. It provides its products under various brands. The company was founded in 1895 and is headquartered in Worcester, the United Kingdom.
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.