Purple Innovation (NASDAQ:PRPL – Get Free Report) and Somnigroup International (NYSE:SGI – Get Free Report) are both consumer discretionary 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.
Insider and Institutional Ownership
88.4% of Purple Innovation shares are held by institutional investors. Comparatively, 99.9% of Somnigroup International shares are held by institutional investors. 54.0% of Purple Innovation shares are held by insiders. Comparatively, 4.0% of Somnigroup International 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.
Earnings and Valuation
This table compares Purple Innovation and Somnigroup International”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Purple Innovation | $453.45 million | 0.02 | -$51.41 million | ($11.24) | -0.21 |
| Somnigroup International | $7.48 billion | 1.80 | $384.10 million | $2.50 | 25.57 |
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.
Profitability
This table compares Purple Innovation and Somnigroup International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Purple Innovation | -10.74% | N/A | -10.89% |
| Somnigroup International | 7.00% | 19.32% | 5.22% |
Analyst Ratings
This is a breakdown of current recommendations for Purple Innovation and Somnigroup International, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Purple Innovation | 1 | 2 | 0 | 0 | 1.67 |
| Somnigroup International | 0 | 1 | 8 | 1 | 3.00 |
Purple Innovation currently has a consensus target price of $16.25, indicating a potential upside of 574.27%. Somnigroup International has a consensus target price of $95.00, indicating a potential upside of 48.60%. Given Purple Innovation’s higher probable upside, research analysts plainly believe Purple Innovation is more favorable than Somnigroup International.
Volatility & Risk
Purple Innovation has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500. Comparatively, Somnigroup International has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500.
Summary
Somnigroup International beats Purple Innovation on 12 of the 15 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 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.
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