Purple Innovation (NASDAQ:PRPL) and BJ’s Wholesale Club (NYSE:BJ) Head-To-Head Comparison

Purple Innovation (NASDAQ:PRPL) and BJ’s Wholesale Club (NYSE:BJ) are both consumer staples companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Earnings and Valuation

This table compares Purple Innovation and BJ’s Wholesale Club”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Purple Innovation	$487.88 million	0.16	-$97.90 million	($0.53)	-1.39
BJ’s Wholesale Club	$20.50 billion	0.60	$534.42 million	$4.34	21.63

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

Profitability

This table compares Purple Innovation and BJ’s Wholesale Club’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Purple Innovation	-12.40%	-472.12%	-13.35%
BJ’s Wholesale Club	2.72%	28.66%	7.99%

Analyst Ratings

This is a breakdown of current ratings for Purple Innovation and BJ’s Wholesale Club, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Purple Innovation	1	1	0	0	1.50
BJ’s Wholesale Club	0	9	9	0	2.50

Purple Innovation presently has a consensus price target of $1.00, suggesting a potential upside of 35.96%. BJ’s Wholesale Club has a consensus price target of $111.43, suggesting a potential upside of 18.68%. Given Purple Innovation’s higher probable upside, equities analysts clearly believe Purple Innovation is more favorable than BJ’s Wholesale Club.

Risk and Volatility

Purple Innovation has a beta of 1.85, meaning that its share price is 85% more volatile than the S&P 500. Comparatively, BJ’s Wholesale Club has a beta of 0.31, meaning that its share price is 69% less volatile than the S&P 500.

Insider & Institutional Ownership

88.4% of Purple Innovation shares are owned by institutional investors. Comparatively, 98.6% of BJ’s Wholesale Club shares are owned by institutional investors. 53.9% of Purple Innovation shares are owned by insiders. Comparatively, 1.4% of BJ’s Wholesale Club shares are owned 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.

Summary

BJ’s Wholesale Club beats Purple Innovation on 11 of the 14 factors compared between the two stocks.

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.

About BJ’s Wholesale Club

BJ’s Wholesale Club Holdings, Inc. engages in the operation of membership warehouse clubs. Its product categories include grocery, household and pet, television and electronics, furniture, computer and tablets, patio and outdoor living, lawn and garden, baby and kids, toys, home, health and beauty, appliances, and jewelry. The company was founded in 1984 and is headquartered in Marlborough, MA.