Critical Comparison: Purple Innovation (PRPL) & La-Z-Boy (LZB)

Purple Innovation (NYSE: LZB) and La-Z-Boy (NYSE:LZB) are both small-cap unclassified companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, profitability, risk, institutional ownership and analyst recommendations.

Profitability

This table compares Purple Innovation and La-Z-Boy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Purple Innovation N/A -36.07% -3.06%
La-Z-Boy 5.43% 15.33% 10.54%

Earnings & Valuation

This table compares Purple Innovation and La-Z-Boy’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Purple Innovation N/A N/A $800,000.00 N/A N/A
La-Z-Boy $1.58 billion 0.97 $80.86 million $1.81 18.12

La-Z-Boy has higher revenue and earnings than Purple Innovation.

Dividends

La-Z-Boy pays an annual dividend of $0.48 per share and has a dividend yield of 1.5%. Purple Innovation does not pay a dividend. La-Z-Boy pays out 26.5% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current ratings and price targets for Purple Innovation and La-Z-Boy, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Purple Innovation 0 0 1 0 3.00
La-Z-Boy 0 1 1 0 2.50

Purple Innovation presently has a consensus target price of $8.00, indicating a potential upside of 43.37%. La-Z-Boy has a consensus target price of $35.50, indicating a potential upside of 8.23%. Given Purple Innovation’s stronger consensus rating and higher probable upside, analysts clearly believe Purple Innovation is more favorable than La-Z-Boy.

Institutional and Insider Ownership

12.7% of Purple Innovation shares are owned by institutional investors. Comparatively, 91.5% of La-Z-Boy shares are owned by institutional investors. 65.8% of Purple Innovation shares are owned by insiders. Comparatively, 4.6% of La-Z-Boy shares are owned by 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 & Volatility

Purple Innovation has a beta of -0.59, suggesting that its share price is 159% less volatile than the S&P 500. Comparatively, La-Z-Boy has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500.

Summary

La-Z-Boy beats Purple Innovation on 8 of the 12 factors compared between the two stocks.

About Purple Innovation

Purple Innovation, Inc. designs and manufactures mattresses, pillows, and cushions. The company markets and sells its products through direct-to-consumer and retail channels. Purple Innovation, Inc. was founded in 2010 and is headquartered in Alpine, Utah.

About La-Z-Boy

La-Z-Boy Incorporated manufactures, markets, imports, exports, distributes, and retails upholstery furniture products, accessories, and casegoods furniture products in the United States, Canada, and internationally. It operates through Upholstery, Casegoods, and Retail segments. The Upholstery segment manufactures and imports upholstered furniture, such as recliners and motion furniture, sofas, loveseats, chairs, sectionals, modulars, ottomans, and sleeper sofas. This segment sells its products directly to La-Z-Boy Furniture Galleries stores, operators of Comfort Studios and England custom comfort center locations, dealers, and other independent retailers. The Casegoods segment imports, markets, and distributes casegoods (wood) furniture, including bedroom sets, dining room sets, entertainment centers, and occasional pieces, as well as manufactures upholstered furniture. This segment sells its products to dealers, La-Z-Boy Furniture Galleries stores, and other independent retailers under the American Drew, Hammary, and Kincaid brands. The Retail segment sells upholstered furniture, casegoods, and other accessories to the end consumer through its retail network. This segment operates a network of 350 La-Z-Boy Furniture Galleries stores and 535 Comfort Studio locations, as well as in-store programs with 542 outlets in Kincaid and England. La-Z-Boy Incorporated also produces reclining chairs; and manufactures and distributes residential furniture. The company was formerly known as La-Z-Boy Chair Company and changed its name to La-Z-Boy Incorporated in 1996. La-Z-Boy Incorporated was founded in 1927 and is based in Monroe, Michigan.

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