Reviewing National Vision (NASDAQ:EYE) and Purple Innovation (NASDAQ:PRPL)

National Vision (NASDAQ:EYE) and Purple Innovation (NASDAQ:PRPL) are both small-cap consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, profitability, analyst recommendations and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
National Vision	-0.12%	3.58%	1.52%
Purple Innovation	-12.40%	-2,029.13%	-13.35%

Volatility & Risk

National Vision has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500. Comparatively, Purple Innovation has a beta of 1.78, suggesting that its share price is 78% more volatile than the S&P 500.

Insider and Institutional Ownership

88.4% of Purple Innovation shares are held by institutional investors. 2.7% of National Vision shares are held by insiders. Comparatively, 53.9% of Purple Innovation shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations for National Vision and Purple Innovation, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
National Vision	1	4	6	0	2.45
Purple Innovation	1	1	0	0	1.50

National Vision currently has a consensus target price of $24.91, indicating a potential upside of 3.23%. Purple Innovation has a consensus target price of $1.00, indicating a potential upside of 20.50%. Given Purple Innovation’s higher probable upside, analysts plainly believe Purple Innovation is more favorable than National Vision.

Earnings and Valuation

This table compares National Vision 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
National Vision	$1.82 billion	1.05	-$28.50 million	($0.18)	-134.06
Purple Innovation	$487.88 million	0.18	-$97.90 million	($0.53)	-1.57

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

Summary

National Vision beats Purple Innovation on 9 of the 14 factors compared between the two stocks.

About National Vision

National Vision Holdings, Inc., through its subsidiaries, operates as an optical retailer in the United States. The company operates in two segments, Owned & Host and Legacy. It offers eyeglasses and contact lenses, and optical accessory products; provides eye exams through its America’s Best, Eyeglass World, Vista Optical, Fred Meyer, and Vista Optical military, as well as Vision Center branded stores; and offers health maintenance organization and optometric services. National Vision Holdings, Inc. was founded in 1990 and is headquartered in Duluth, Georgia.

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.