Critical Contrast: Primo Water (NASDAQ:PRMW) versus National Beverage (NASDAQ:FIZZ)

Primo Water (NASDAQ:PRMWGet Rating) and National Beverage (NASDAQ:FIZZGet Rating) are both mid-cap utilities companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, dividends, valuation and earnings.

Analyst Recommendations

This is a summary of recent ratings for Primo Water and National Beverage, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Primo Water 0 0 0 0 N/A
National Beverage 1 0 0 0 1.00

National Beverage has a consensus target price of $42.00, suggesting a potential downside of 18.41%. Given National Beverage’s higher possible upside, analysts plainly believe National Beverage is more favorable than Primo Water.

Volatility and Risk

Primo Water has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500. Comparatively, National Beverage has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500.

Insider & Institutional Ownership

86.9% of Primo Water shares are held by institutional investors. Comparatively, 24.3% of National Beverage shares are held by institutional investors. 4.4% of Primo Water shares are held by company insiders. Comparatively, 75.0% of National Beverage shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Primo Water and National Beverage’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Primo Water -1.40% 6.15% 2.17%
National Beverage 12.25% 48.49% 28.21%

Valuation and Earnings

This table compares Primo Water and National Beverage’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Primo Water $2.07 billion 1.17 -$3.20 million ($0.19) -79.63
National Beverage $1.14 billion 4.22 $158.51 million $1.49 34.55

National Beverage has lower revenue, but higher earnings than Primo Water. Primo Water is trading at a lower price-to-earnings ratio than National Beverage, indicating that it is currently the more affordable of the two stocks.

Summary

National Beverage beats Primo Water on 9 of the 12 factors compared between the two stocks.

About Primo Water

(Get Rating)

Primo Water Corporation provides pure-play water solutions for residential and commercial customers. It offers bottled water, water dispensers, purified bottled water, self-service refill drinking water, premium spring, mineral water, sparkling and flavored water, filtration equipment, and coffee. The company offers its products under the Primo, Alhambra, Crystal Rock, Mountain Valley, Deep Rock, Hinckley Springs, Crystal Springs, Kentwood Springs, Mount Olympus, Pureflo, Nursery, Sierra Springs, Sparkletts, Clear Mountain Natural Spring Water, Earth2O, Renü, and Water Event Pure Water Solutions brands in the United States; Canadian Springs and Labrador Source brands in Canada; and Decantae, Eden, Eden Springs, Chateaud'eau, and Mey Eden brands in Europe and Israel. The company sells its products through retailers and online at various price points. The company was formerly known as Cott Corporation and changed its name to Primo Water Corporation in March 2020. Primo Water Corporation was incorporated in 1955 and is headquartered in Tampa, Florida.

About National Beverage

(Get Rating)

National Beverage Corp., through its subsidiaries, develops, produces, markets, and sells a portfolio of sparkling waters, juices, energy drinks, and carbonated soft drinks primarily in the United States and Canada. The company offers beverages to the active and health-conscious consumers, including sparkling waters, energy drinks, and juices under the LaCroix, LaCroix Cúrate, LaCroix NiCola, Clear Fruit, Rip It, Everfresh, Everfresh Premier Varietals, and Mr. Pure brands. It also offers carbonated soft drinks under the Shasta and Faygo brands. The company serves retailers, as well as various smaller up-and-down-the-street accounts through the take-home, convenience, and food-service distribution channels. National Beverage Corp. was incorporated in 1985 and is based in Fort Lauderdale, Florida.

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