Head-To-Head Comparison: Mohawk Industries (NYSE:MHK) & Purple Innovation (NASDAQ:PRPL)
by Tristan Rich · The Markets DailyMohawk Industries (NYSE:MHK – Get Free Report) and Purple Innovation (NASDAQ:PRPL – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, risk, dividends, earnings and valuation.
Profitability
This table compares Mohawk Industries and Purple Innovation’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Mohawk Industries | 4.15% | 7.50% | 4.60% |
| Purple Innovation | -10.74% | N/A | -10.89% |
Valuation & Earnings
This table compares Mohawk Industries and Purple Innovation”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Mohawk Industries | $10.79 billion | 0.81 | $369.90 million | $7.55 | 16.99 |
| Purple Innovation | $468.73 million | 0.04 | -$51.41 million | ($11.24) | -0.35 |
Mohawk Industries has higher revenue and earnings than Purple Innovation. Purple Innovation is trading at a lower price-to-earnings ratio than Mohawk Industries, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
79.0% of Mohawk Industries shares are owned by institutional investors. Comparatively, 88.4% of Purple Innovation shares are owned by institutional investors. 17.9% of Mohawk Industries shares are owned by company insiders. Comparatively, 54.0% of Purple Innovation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of recent ratings and target prices for Mohawk Industries and Purple Innovation, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Mohawk Industries | 0 | 12 | 3 | 1 | 2.31 |
| Purple Innovation | 1 | 2 | 0 | 0 | 1.67 |
Mohawk Industries presently has a consensus target price of $130.50, suggesting a potential upside of 1.73%. Purple Innovation has a consensus target price of $16.25, suggesting a potential upside of 307.27%. Given Purple Innovation’s higher probable upside, analysts plainly believe Purple Innovation is more favorable than Mohawk Industries.
Volatility and Risk
Mohawk Industries has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500. Comparatively, Purple Innovation has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500.
Summary
Mohawk Industries beats Purple Innovation on 11 of the 15 factors compared between the two stocks.
About Mohawk Industries
Mohawk Industries, Inc. designs, manufactures, sources, distributes, and markets flooring products for residential and commercial remodeling, and new construction channels in the United States, Europe, Latin America, and internationally. It operates through three segments: Global Ceramic, Flooring North America, and Flooring Rest of the World. The company provides ceramic, porcelain, and natural stone tiles products for floor and wall applications; natural stones, porcelain slabs, and quartz countertops, as well as installation materials; floor covering products comprising broadloom carpets, carpet tiles, rugs and mats, carpet pads, laminates, medium-density fiberboards, wood floorings, luxury vinyl tiles, and sheet vinyl; and roofing panels, insulation boards, mezzanine flooring products, medium-density fiberboard, and chipboards. It also licenses its intellectual property to flooring manufacturers. The company sells its products under the American Olean, Daltile, Decortiles, Eliane, EmilGroup, KAI, Kerama Marazzi, Marazzi, Ragno, Aladdin Commercial, Durkan, Foss, IVC, Karastan, Mohawk, Mohawk Group, Mohawk Home, Pergo, Portico, Quick-Step, Feltex, GH Commercial, Godfrey Hirst, Hycraft, IVC Commercial, IVC Home, Lentex, Leoline, and Moduleo, Redbook, Unilin, and Vitromex brands. It offers its products to company-owned service centers and stores, company-operated distributors, floor covering retailers, wholesalers, mass merchandisers, department stores, shop at home, buying groups, ceramic tile specialists, e-commerce retailers, residential builders, independent distributors, commercial contractors, and commercial end users. The company was incorporated in 1988 and is headquartered in Calhoun, Georgia.
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.