Huntsman vs Purple Which Is Superior?

Huntsman Corporation and Purple Innovation Inc. are two well-known companies in the stock market that cater to different industries. Huntsman is a global manufacturer and marketer of specialty chemicals, while Purple is a direct-to-consumer mattress and bedding products company. Both companies have seen fluctuations in their stock prices in recent years, with Huntsman experiencing growth in the industrial sector and Purple gaining traction in the e-commerce market. Investors looking to diversify their portfolios may want to consider the potential of both Huntsman and Purple stocks.

Huntsman or Purple?

When comparing Huntsman and Purple, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Huntsman and Purple.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Huntsman has a dividend yield of 5.73%, while Purple has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Huntsman reports a 5-year dividend growth of 9.00% year and a payout ratio of -92.06%. On the other hand, Purple reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Huntsman P/E ratio at -15.89 and Purple's P/E ratio at 57.37. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Huntsman P/B ratio is 0.43 while Purple's P/B ratio is 2.36.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Huntsman has seen a 5-year revenue growth of 0.18%, while Purple's is 1.65%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Huntsman's ROE at -4.64% and Purple's ROE at 4.18%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $16.36 for Huntsman and R100.00 for Purple. Over the past year, Huntsman's prices ranged from $15.46 to $27.01, with a yearly change of 74.71%. Purple's prices fluctuated between R59.00 and R118.00, with a yearly change of 100.00%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.