Primo Water (PRMW) & Its Rivals Critical Survey

Primo Water (NYSE:PRMWGet Rating) is one of 18 public companies in the “Bottled & canned soft drinks” industry, but how does it contrast to its rivals? We will compare Primo Water to similar businesses based on the strength of its institutional ownership, analyst recommendations, earnings, profitability, dividends, risk and valuation.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Primo Water and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Primo Water 1 1 5 0 2.57
Primo Water Competitors 216 760 1020 36 2.43

Primo Water presently has a consensus price target of $19.30, indicating a potential upside of 31.65%. As a group, “Bottled & canned soft drinks” companies have a potential upside of 34.95%. Given Primo Water’s rivals higher probable upside, analysts clearly believe Primo Water has less favorable growth aspects than its rivals.

Dividends

Primo Water pays an annual dividend of $0.28 per share and has a dividend yield of 1.9%. Primo Water pays out -1,400.0% of its earnings in the form of a dividend. As a group, “Bottled & canned soft drinks” companies pay a dividend yield of 0.9% and pay out 20.6% of their earnings in the form of a dividend. Primo Water is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

93.4% of Primo Water shares are owned by institutional investors. Comparatively, 51.0% of shares of all “Bottled & canned soft drinks” companies are owned by institutional investors. 5.9% of Primo Water shares are owned by company insiders. Comparatively, 17.2% of shares of all “Bottled & canned soft drinks” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Primo Water and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Primo Water $2.07 billion -$3.20 million -733.00
Primo Water Competitors $5.72 billion $412.51 million -100.91

Primo Water’s rivals have higher revenue and earnings than Primo Water. Primo Water is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Volatility & Risk

Primo Water has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500. Comparatively, Primo Water’s rivals have a beta of 1.10, indicating that their average stock price is 10% more volatile than the S&P 500.

Profitability

This table compares Primo Water and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Primo Water -0.15% 5.33% 1.94%
Primo Water Competitors 3.91% 0.12% 2.03%

Summary

Primo Water rivals beat Primo Water on 8 of the 15 factors compared.

Primo Water Company Profile (Get Rating)

Primo Water Corporation provides water direct to consumers and water filtration services in North America and Europe. It offers bottled water, purified bottled water, premium spring, sparkling and flavored water, mineral water, filtration equipment, and coffee; as well as water dispensers, and self-service refill drinking water. 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, Water Event Pure Water Solutions, Canadian Springs, Labrador Source, Decantae, Eden, Eden Springs, Chateaud'eau, and Mey Eden brands. It provides its services to residential customers, small and medium-sized businesses, and regional and national corporations and retailers. 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.

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