Head to Head Analysis: Primo Water (PRMW) vs. The Competition

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

Earnings and Valuation

This table compares Primo Water and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Primo Water $2.07 billion -$3.20 million -728.50
Primo Water Competitors $5.73 billion $413.32 million -100.37

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

Profitability

This table compares Primo Water and its competitors’ 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%

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 1.3% and pay out 28.0% of their earnings in the form of a dividend. Primo Water is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Risk and Volatility

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

Institutional and Insider 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 insiders. Comparatively, 17.0% of shares of all “Bottled & canned soft drinks” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Primo Water and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Primo Water 1 1 5 0 2.57
Primo Water Competitors 216 763 1021 36 2.43

Primo Water currently has a consensus price target of $19.30, suggesting a potential upside of 32.46%. As a group, “Bottled & canned soft drinks” companies have a potential upside of 35.57%. Given Primo Water’s competitors higher probable upside, analysts plainly believe Primo Water has less favorable growth aspects than its competitors.

Summary

Primo Water competitors 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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