Financial Survey: Primo Water (PRMW) versus Its Competitors

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

Analyst Recommendations

This is a breakdown of recent recommendations for Primo Water and its rivals, as provided 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 217 764 1023 36 2.43

Primo Water currently has a consensus target price of $19.30, suggesting a potential upside of 33.47%. As a group, “Bottled & canned soft drinks” companies have a potential upside of 37.20%. Given Primo Water’s rivals higher probable upside, analysts plainly 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 1.4% and pay out 28.2% 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.

Institutional and Insider Ownership

93.4% of Primo Water shares are held by institutional investors. Comparatively, 51.4% of shares of all “Bottled & canned soft drinks” companies are held by institutional investors. 5.9% of Primo Water shares are held by insiders. Comparatively, 17.0% of shares of all “Bottled & canned soft drinks” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

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 3.77% -2.77% 2.05%

Earnings and Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Primo Water $2.07 billion -$3.20 million -723.00
Primo Water Competitors $5.73 billion $412.20 million -99.02

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.

Risk & Volatility

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

Summary

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

About Primo Water (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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