Critical Analysis: Casper Sleep (NYSE:CSPR) versus Purple Innovation (NYSE:PRPL)

Share on StockTwits

Casper Sleep (NYSE:CSPR) and Purple Innovation (NASDAQ:PRPL) are both small-cap retail/wholesale companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Institutional & Insider Ownership

30.9% of Casper Sleep shares are held by institutional investors. Comparatively, 64.5% of Purple Innovation shares are held by institutional investors. 75.1% of Purple Innovation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Casper Sleep and Purple Innovation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Casper Sleep $439.26 million 0.63 -$93.04 million ($8.86) -0.78
Purple Innovation $428.36 million 3.23 -$4.03 million $1.42 18.04

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

Profitability

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

Net Margins Return on Equity Return on Assets
Casper Sleep N/A N/A N/A
Purple Innovation 0.81% 545.13% 27.34%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Casper Sleep and Purple Innovation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Casper Sleep 0 3 6 0 2.67
Purple Innovation 0 0 8 0 3.00

Casper Sleep currently has a consensus price target of $11.72, suggesting a potential upside of 69.89%. Purple Innovation has a consensus price target of $22.88, suggesting a potential downside of 10.71%. Given Casper Sleep’s higher possible upside, analysts plainly believe Casper Sleep is more favorable than Purple Innovation.

Summary

Purple Innovation beats Casper Sleep on 10 of the 13 factors compared between the two stocks.

About Casper Sleep

Casper Sleep Inc. provides sleep products to consumers in the United States, Canada, and Europe. It offers a range of Casper mattresses, pillows, sheets and duvets, bedroom furniture and accessories, sleep technology, and related services through its e-commerce platform, 60 Casper retail stores, and 18 retail partners. The company was formerly known as Providence Mattress Company and changed its name to Casper Sleep Inc. in January 2014. Casper Sleep Inc. was incorporated in 2013 and is headquartered in New York, New York.

About Purple Innovation

Purple Innovation, Inc. designs and manufactures mattresses, pillows, and cushions. It also offers sheets, mattress protectors, platform bases, and foundations. The company markets and sells its products through direct-to-consumer online channels, traditional wholesale partners, and third-party online retailers. Purple Innovation, Inc. was founded in 2010 and is headquartered in Alpine, Utah.

Receive News & Ratings for Casper Sleep Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Casper Sleep and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply