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PRPL vs RRGB

PRPL
Purple Innovation, Inc.
BEARISH
Price
$0.63
Market Cap
$68.3M
Sector
Consumer Cyclical
AI Confidence
95%
RRGB
Red Robin Gourmet Burgers, Inc.
BEARISH
Price
$3.95
Market Cap
$71.6M
Sector
Consumer Cyclical
AI Confidence
90%

Valuation

P/E Ratio
PRPL
--
RRGB
--
Forward P/E
PRPL
-3.96
RRGB
26.33
P/B Ratio
PRPL
-2.3
RRGB
-0.67
P/S Ratio
PRPL
0.15
RRGB
0.06
EV/EBITDA
PRPL
-20.39
RRGB
8.89

Profitability

Gross Margin
PRPL
40.44%
RRGB
14.21%
Operating Margin
PRPL
-1.55%
RRGB
-1.71%
Profit Margin
PRPL
-10.97%
RRGB
-1.92%
ROE
PRPL
--
RRGB
--
ROA
PRPL
-6.34%
RRGB
1.38%

Growth

Revenue Growth
PRPL
9.1%
RRGB
-5.7%
Earnings Growth
PRPL
--
RRGB
--

Financial Health

Debt/Equity
PRPL
--
RRGB
--
Current Ratio
PRPL
1.35
RRGB
0.45
Quick Ratio
PRPL
0.65
RRGB
0.2

Dividends

Dividend Yield
PRPL
--
RRGB
--
Payout Ratio
PRPL
0.0%
RRGB
0.0%

AI Verdict

PRPL BEARISH

The company is in severe financial distress, evidenced by a critical Piotroski F-Score of 1/9 and a negative Price-to-Book ratio of -2.30, indicating negative shareholders' equity. While the company has maintained a healthy gross margin of 40.44% and modest revenue growth of 9.10%, these are overshadowed by consistent net losses and a catastrophic 5-year price decline of 98.2%. The lack of a Graham Number or Intrinsic Value calculation is a direct result of the company's negative earnings and equity. Overall, the deterministic health scores signal a high risk of insolvency.

Strengths
Healthy gross margin of 40.44%
Positive year-over-year revenue growth of 9.10%
Recent trend of beating quarterly earnings estimates (3 of last 4)
Risks
Negative shareholders' equity (P/B of -2.30) indicating insolvency risk
Severe financial instability as indicated by a Piotroski F-Score of 1/9
Chronic negative profit margins (-10.97%)
RRGB BEARISH

RRGB exhibits severe financial distress, anchored by a weak Piotroski F-Score of 2/9 and a negative Price-to-Book ratio (-0.67), indicating negative shareholder equity. The company is facing a critical liquidity crisis with a current ratio of 0.45 and a quick ratio of 0.20, suggesting it cannot cover short-term obligations. While recent earnings have beaten lowered analyst expectations and the stock has seen a short-term price bounce, the underlying fundamentals—including declining revenue (-5.70% YoY) and consistent insider selling—point to a high risk of insolvency or further devaluation.

Strengths
Extremely low Price/Sales ratio (0.06) suggesting deep value if a turnaround occurs
Recent quarterly earnings beats (3 of last 4 quarters)
Significant gap between current price ($3.95) and analyst target price ($11.12)
Risks
Negative shareholder equity (Price/Book: -0.67)
Severe liquidity shortage (Current Ratio: 0.45)
Negative revenue growth trends (YoY and Q/Q both ~ -5.7%)

Compare Another Pair

PRPL vs RRGB: Head-to-Head Comparison

This page compares Purple Innovation, Inc. (PRPL) and Red Robin Gourmet Burgers, Inc. (RRGB) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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