The rising demand for good-quality mattresses and mattress companies’ efforts to develop premium products should drive the mattress industry’s growth. Consequently, popular mattress companies Tempur Sealy (NYSE:TPX) and Purple Innovation (NASDAQ:PRPL) should benefit. But let’s find out which of these stocks is a better buy now. Read on.Tempur Sealy International, Inc. (TPX) in Lexington, Ky., and Purple Innovation, Inc. (PRPL) in Lehi, Utah, are two popular mattress manufacturers in the United States. TPX manufactures and markets bedding mattresses, adjustable foundations, pillows, and other comforting products and accessories under its own and other brand names internationally. In comparison, PRPL operates as a comfort technology company offering mattresses, pillows, and cushions. Both companies sell their products primarily through third-party retailers, company-owned stores, and e-commerce.
Since the COVID-19 pandemic, remote working has been motivating people to improve the quality of their lives and living conditions. With attractive summer offers and heightened consumer disposable income, in-part due to government rescue spending, home improvement companies have been generating rising sales. Among other products, the demand for soft, comforting, eco-friendly, and durable mattresses is on the rise as people focus more on their health and wellness. The global mattress market is expected to grow at a 7% CAGR from 2021 - 2026. And both TPX and PRPL are likely to benefit from the industry tailwinds.
But while PRPL's stock price declined by 26.2% over the past month, TPX surged 38.5%. So, TPX is a clear winner with 73.3% gains versus PRPL’s negative returns in terms of the past year's performance. But, which of these stocks is a better pick now? Let’s find out.