Reviewing Greystone Logistics (OTCMKTS:GLGI) & PURPLE INNOVATION (NASDAQ:PRPL)

PURPLE INNOVATION (NASDAQ:PRPL) and Greystone Logistics (OTCMKTS:GLGI) are both small-cap consumer staples companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, profitability, risk, dividends, earnings and analyst recommendations.

Earnings & Valuation

This table compares PURPLE INNOVATION and Greystone Logistics”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	($0.62)	-1.15
Greystone Logistics	$61.78 million	0.60	$5.03 million	$0.09	14.67

Greystone Logistics has lower revenue, but higher earnings than PURPLE INNOVATION. PURPLE INNOVATION is trading at a lower price-to-earnings ratio than Greystone Logistics, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and price targets for PURPLE INNOVATION and Greystone Logistics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PURPLE INNOVATION	0	2	0	0	2.00
Greystone Logistics	0	0	0	0	0.00

PURPLE INNOVATION presently has a consensus target price of $1.25, suggesting a potential upside of 75.27%. Given PURPLE INNOVATION’s stronger consensus rating and higher possible upside, equities analysts plainly believe PURPLE INNOVATION is more favorable than Greystone Logistics.

Profitability

This table compares PURPLE INNOVATION and Greystone Logistics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PURPLE INNOVATION	-14.16%	-145.52%	-13.27%
Greystone Logistics	5.43%	12.63%	5.82%

Institutional & Insider Ownership

88.4% of PURPLE INNOVATION shares are held by institutional investors. Comparatively, 10.3% of Greystone Logistics shares are held by institutional investors. 53.9% of PURPLE INNOVATION shares are held 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.

Volatility and Risk

PURPLE INNOVATION has a beta of 1.56, suggesting that its share price is 56% more volatile than the S&P 500. Comparatively, Greystone Logistics has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500.

Summary

Greystone Logistics beats PURPLE INNOVATION on 7 of the 13 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 Greystone Logistics

Greystone Logistics, Inc., through its subsidiaries, manufactures and markets plastic pallets and pelletized recycled plastic resins in the United States. The company offers rackable, can, nestable, display, monoblock, half-barrel and slim keg stackable, drum, and mid duty pallets. It sells its pallets directly, as well as through a network of independent contractor distributors. The company was formerly known as PalWeb Corporation and changed its name to Greystone Logistics, Inc. in March 2005. Greystone Logistics, Inc. was incorporated in 1969 and is based in Tulsa, Oklahoma.