Contrasting Victoria (OTCMKTS:VCCTF) and Purple Innovation (NASDAQ:PRPL)

Purple Innovation (NASDAQ:PRPL) and Victoria (OTCMKTS:VCCTF) are both consumer cyclical companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Purple Innovation and Victoria, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Purple Innovation	0	3	3	0	2.50
Victoria	0	0	0	0	N/A

Purple Innovation currently has a consensus target price of $2.53, suggesting a potential upside of 169.08%. Given Purple Innovation’s higher possible upside, equities analysts plainly believe Purple Innovation is more favorable than Victoria.

Profitability

This table compares Purple Innovation and Victoria’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Purple Innovation	-19.86%	-72.81%	-18.09%
Victoria	N/A	N/A	N/A

Insider and Institutional Ownership

88.4% of Purple Innovation shares are owned by institutional investors. 54.3% of Purple Innovation shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Purple Innovation and Victoria”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Purple Innovation	$526.24 million	0.19	-$120.76 million	($1.34)	-0.70
Victoria	N/A	N/A	N/A	N/A	N/A

Victoria has lower revenue, but higher earnings than Purple Innovation.

Summary

Purple Innovation beats Victoria on 5 of the 8 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 Victoria

Victoria PLC, together with its subsidiaries, designs, manufactures, and distributes flooring products primarily in the United Kingdom, Spain, Italy, the Netherlands, Germany, Belgium, Turkey, the United States, and Australia. The company operates through four segments: UK & Europe Soft Flooring, UK & Europe Ceramic Tiles, Australia, and North America. It offers a range of wool and synthetic broadloom carpets, ceramic and porcelain tiles, flooring underlays, luxury vinyl tiles (LVT), hardwood flooring products, artificial grass, carpet tiles, and flooring accessories. The company also offers logistics services. It provides its products under various brands. The company was founded in 1895 and is headquartered in Worcester, the United Kingdom.