Comparing Henkel AG & Co. (OTCMKTS:HENKY) and Purple Innovation (NASDAQ:PRPL)

Henkel AG & Co. (OTCMKTS:HENKY) and Purple Innovation (NASDAQ:PRPL) are both consumer staples companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, valuation, institutional ownership and analyst recommendations.

Institutional & Insider Ownership

0.0% of Henkel AG & Co. shares are owned by institutional investors. Comparatively, 88.4% of Purple Innovation shares are owned by institutional investors. 53.9% of Purple Innovation shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Henkel AG & Co. and Purple Innovation’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Henkel AG & Co.	N/A	N/A	N/A
Purple Innovation	-18.43%	-472.12%	-13.20%

Analyst Ratings

This is a summary of recent ratings and price targets for Henkel AG & Co. and Purple Innovation, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Henkel AG & Co.	0	1	1	2	3.25
Purple Innovation	0	1	0	0	2.00

Purple Innovation has a consensus price target of $1.00, indicating a potential downside of 5.66%. Given Purple Innovation’s higher possible upside, analysts plainly believe Purple Innovation is more favorable than Henkel AG & Co..

Risk and Volatility

Henkel AG & Co. has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500. Comparatively, Purple Innovation has a beta of 1.57, suggesting that its stock price is 57% more volatile than the S&P 500.

Earnings and Valuation

This table compares Henkel AG & Co. and Purple Innovation”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Henkel AG & Co.	$23.36 billion	1.44	$2.17 billion	N/A	N/A
Purple Innovation	$456.84 million	0.25	-$97.90 million	($0.78)	-1.36

Henkel AG & Co. has higher revenue and earnings than Purple Innovation.

Summary

Henkel AG & Co. beats Purple Innovation on 9 of the 13 factors compared between the two stocks.

About Henkel AG & Co.

Henkel AG & Co. KGaA, together with its subsidiaries, engages in the adhesive technologies and beauty care, and laundry and home care businesses worldwide. It operates in two segments, Adhesive Technologies and Consumer Brands segments. The company offers adhesives, sealants, and functional coatings for various business areas, including packaging and consumer goods; mobility and electronics; and craftsmen, construction, and professional industries. It also provides hair styling, hair coloring, and hair care products; and body products, as well as distributes its products through brick-and-mortar stores, hair salons, and digital channels. In addition, the company offers heavy-duty and specialty detergents, fabric softeners, laundry performance enhancers, and other fabric care products; hand and automatic dishwashing products; cleaners for bathroom and toilet applications; household, glass, and specialty cleaners; and insect control products. The company was founded in 1876 and is headquartered in Düsseldorf, Germany.

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.