Somnigroup International (NYSE:SGI – Get Free Report) and Purple Innovation (NASDAQ:PRPL – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, valuation, risk and profitability.
Profitability
This table compares Somnigroup International and Purple Innovation’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Somnigroup International | 7.00% | 19.32% | 5.22% |
| Purple Innovation | -10.74% | N/A | -10.89% |
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Somnigroup International and Purple Innovation, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Somnigroup International | 0 | 1 | 8 | 1 | 3.00 |
| Purple Innovation | 1 | 2 | 0 | 0 | 1.67 |
Insider and Institutional Ownership
99.9% of Somnigroup International shares are owned by institutional investors. Comparatively, 88.4% of Purple Innovation shares are owned by institutional investors. 4.0% of Somnigroup International shares are owned by company insiders. Comparatively, 54.0% of Purple Innovation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Somnigroup International and Purple Innovation”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Somnigroup International | $7.48 billion | 1.75 | $384.10 million | $2.50 | 24.81 |
| Purple Innovation | $468.73 million | 0.02 | -$51.41 million | ($11.24) | -0.17 |
Somnigroup International has higher revenue and earnings than Purple Innovation. Purple Innovation is trading at a lower price-to-earnings ratio than Somnigroup International, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Somnigroup International has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500. Comparatively, Purple Innovation has a beta of 1.45, meaning that its stock price is 45% more volatile than the S&P 500.
Summary
Somnigroup International beats Purple Innovation on 11 of the 14 factors compared between the two stocks.
About Somnigroup International
Somnigroup International Inc., together with its subsidiaries, designs, manufactures, distributes, and retails bedding products in the United States and internationally. It provides mattresses, foundations and adjustable foundations, and adjustable bases, as well as other products comprising pillows, mattress covers, sheets, cushions, and various other accessories and comfort products under the Tempur-Pedic, Sealy, Stearns & Foster, Sealy, and Cocoon by Sealy brand names. The company sells its products through approximately company-owned stores, online, and call centers; and third party retailers, including third party distribution, hospitality, and healthcare. It also operates a portfolio of retail brands, including Tempur-Pedic retail stores, Sleep Outfitters, Sleep Solutions Outlet, Dreams, and SOVA; and licenses Sealy, Tempur, and Stearns & Foster brands, as well as technology and trademarks to other manufacturers. The company was formerly known as Tempur Sealy International, Inc. and changed its name to Somnigroup International Inc. in February 2025. Somnigroup International Inc. was founded in 1846 and is based in Lexington, Kentucky.
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.
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