Purple vs Sleep Number Which Is a Better Investment?

Purple and Sleep Number are two well-known companies in the rapidly growing mattress industry. Purple is known for its innovative and patented Hyper-Elastic Polymer materials, while Sleep Number stands out with its adjustable air beds and advanced sleep tracking technology. Both companies have seen notable success in recent years, but the competition between them remains fierce. Investors are closely monitoring their stocks as they navigate the evolving market and consumer preferences.

Purple or Sleep Number?

When comparing Purple and Sleep Number, 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 Purple and Sleep Number.

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. Purple has a dividend yield of -%, while Sleep Number has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Purple reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Sleep Number 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 Purple P/E ratio at -147.16 and Sleep Number's P/E ratio at -8.22. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Purple P/B ratio is 2.65 while Sleep Number's P/B ratio is -0.75.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Purple has seen a 5-year revenue growth of 1.77%, while Sleep Number's is 0.94%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Purple's ROE at -1.82% and Sleep Number's ROE at 9.16%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are R106.00 for Purple and $14.80 for Sleep Number. Over the past year, Purple's prices ranged from R46.00 to R110.00, with a yearly change of 139.13%. Sleep Number's prices fluctuated between $8.13 and $20.75, with a yearly change of 155.23%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.