Somnigroup International (NYSE:SGI – Get Free Report) and Purple Innovation (NASDAQ:PRPL – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.
Risk & Volatility
Somnigroup International has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500. Comparatively, Purple Innovation has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500.
Earnings & Valuation
This table compares Somnigroup International and Purple Innovation”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Somnigroup International | $7.48 billion | 1.75 | $384.10 million | $2.50 | 24.81 |
| Purple Innovation | $468.73 million | 0.02 | -$51.41 million | ($11.24) | -0.17 |
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 Somnigroup International and Purple Innovation’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Somnigroup International | 7.00% | 19.32% | 5.22% |
| Purple Innovation | -10.74% | N/A | -10.89% |
Analyst Recommendations
This is a breakdown of current ratings and price targets for Somnigroup International and Purple Innovation, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Somnigroup International | 0 | 1 | 8 | 1 | 3.00 |
| Purple Innovation | 1 | 2 | 0 | 0 | 1.67 |
Somnigroup International currently has a consensus target price of $95.00, indicating a potential upside of 53.15%. Purple Innovation has a consensus target price of $16.25, indicating a potential upside of 755.26%. Given Purple Innovation’s higher possible upside, analysts clearly believe Purple Innovation is more favorable than Somnigroup International.
Insider and Institutional Ownership
99.9% of Somnigroup International shares are held by institutional investors. Comparatively, 88.4% of Purple Innovation shares are held by institutional investors. 4.0% of Somnigroup International shares are held by insiders. Comparatively, 54.0% of Purple Innovation shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Summary
Somnigroup International beats Purple Innovation on 11 of the 14 factors compared between the two stocks.
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.
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.
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