Purple Innovation (NASDAQ:PRPL) versus Taylor Wimpey (OTCMKTS:TWODY) Financial Analysis

Taylor Wimpey (OTCMKTS:TWODY) and Purple Innovation (NASDAQ:PRPL) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, risk, earnings and institutional ownership.

Volatility & Risk

Taylor Wimpey has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500. Comparatively, Purple Innovation has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Taylor Wimpey	N/A	N/A	N/A
Purple Innovation	-13.65%	N/A	-12.25%

Analyst Ratings

This is a breakdown of current ratings for Taylor Wimpey and Purple Innovation, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Taylor Wimpey	2	1	1	0	1.75
Purple Innovation	1	2	0	0	1.67

Purple Innovation has a consensus price target of $16.25, indicating a potential upside of 69.62%. Given Purple Innovation’s higher probable upside, analysts plainly believe Purple Innovation is more favorable than Taylor Wimpey.

Institutional & Insider Ownership

88.4% of Purple Innovation shares are owned by institutional investors. 54.0% of Purple Innovation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Taylor Wimpey and Purple Innovation”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Taylor Wimpey	$4.37 billion	0.91	$433.99 million	N/A	N/A
Purple Innovation	$460.28 million	0.09	-$51.41 million	($14.50)	-0.66

Taylor Wimpey has higher revenue and earnings than Purple Innovation.

Summary

Taylor Wimpey beats Purple Innovation on 7 of the 11 factors compared between the two stocks.

About Taylor Wimpey

Taylor Wimpey plc operates as a homebuilder in the United Kingdom and Spain. It builds and delivers various homes and communities. Taylor Wimpey plc was incorporated in 1935 and is based in High Wycombe, 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.