BBB Foods (NYSE:TBBB) vs. Purple Innovation (NASDAQ:PRPL) Critical Survey

Purple Innovation (NASDAQ:PRPL) and BBB Foods (NYSE:TBBB) are both consumer staples companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, valuation, analyst recommendations, earnings and risk.

Insider and Institutional Ownership

88.4% of Purple Innovation shares are held by institutional investors. Comparatively, 8.4% of BBB Foods shares are held by institutional investors. 53.9% of Purple Innovation shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Purple Innovation has a beta of 1.85, meaning that its stock price is 85% more volatile than the S&P 500. Comparatively, BBB Foods has a beta of -0.15, meaning that its stock price is 115% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Purple Innovation and BBB Foods, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Purple Innovation	1	1	0	0	1.50
BBB Foods	1	3	3	0	2.29

Purple Innovation presently has a consensus price target of $1.00, suggesting a potential upside of 34.05%. BBB Foods has a consensus price target of $35.80, suggesting a potential upside of 6.29%. Given Purple Innovation’s higher possible upside, research analysts clearly believe Purple Innovation is more favorable than BBB Foods.

Profitability

This table compares Purple Innovation and BBB Foods’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Purple Innovation	-12.40%	-472.12%	-13.35%
BBB Foods	-2.61%	-44.56%	-7.47%

Earnings and Valuation

This table compares Purple Innovation and BBB Foods”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Purple Innovation	$487.88 million	0.17	-$97.90 million	($0.53)	-1.41
BBB Foods	$3.15 billion	1.22	$18.36 million	($0.84)	-40.10

BBB Foods has higher revenue and earnings than Purple Innovation. BBB Foods is trading at a lower price-to-earnings ratio than Purple Innovation, indicating that it is currently the more affordable of the two stocks.

Summary

BBB Foods beats Purple Innovation on 8 of the 14 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 BBB Foods

BBB Foods Inc., through its subsidiaries, operates a chain of grocery retail stores in Mexico. It offers household cleaning, personal hyenine, cosmetics and beauty, pharmacy, and general merchandise products, as well as jellies and desserts, foods and drinks, pet supplies, coffee, tea, chocolates, breads, dry and frozen foods, snacks and sweets, and toilet papers and napkins. The company also provides branded, private label, and spot products. It serves low-to-middle income households through online channels. BBB Foods Inc. was incorporated in 2004 and is headquartered in Mexico City, Mexico.