Critical Analysis: Celsius (NASDAQ:CELH) versus Primo Water (NASDAQ:PRMW)

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

Analyst Ratings

This is a summary of recent ratings and target prices for Primo Water and Celsius, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Primo Water 0 0 0 0 N/A
Celsius 0 1 5 0 2.83

Celsius has a consensus target price of $100.00, indicating a potential downside of 0.70%. Given Celsius’ higher possible upside, analysts clearly believe Celsius is more favorable than Primo Water.

Profitability

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

Net Margins Return on Equity Return on Assets
Primo Water -0.64% 6.10% 2.17%
Celsius 6.27% 13.83% 9.37%

Volatility and Risk

Primo Water has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500. Comparatively, Celsius has a beta of 1.91, suggesting that its stock price is 91% more volatile than the S&P 500.

Institutional & Insider Ownership

86.9% of Primo Water shares are held by institutional investors. Comparatively, 55.3% of Celsius shares are held by institutional investors. 4.4% of Primo Water shares are held by insiders. Comparatively, 2.7% of Celsius shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Primo Water and Celsius’ top-line 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 1.05 -$3.20 million ($0.09) -150.54
Celsius $314.27 million 24.24 $3.94 million $0.39 258.21

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

Summary

Celsius beats Primo Water on 10 of the 13 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, RenĂ¼, 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 Celsius

(Get Rating)

Celsius Holdings, Inc. develops, processes, markets, distributes, and sells functional drinks and liquid supplements in North America, Europe, Asia, and internationally. It offers various carbonated and non-carbonated functional energy drinks under the CELSIUS Originals name; dietary supplement in carbonated flavors, including apple jack'd, orangesicle, inferno punch, cherry lime, blueberry pomegranate, strawberry dragon fruit, tangerine grapefruit, and jackfruit under the CELSIUS HEAT name; and branched-chain amino acids functional energy drink that fuels muscle recovery under the CELSIUS BCCA+ENERGY name. The company also provides CELSIUS On-the-Go, a powdered form of the active ingredients in functional energy drinks in individual On-The-Go packets and canisters; and sparkling grapefruit, cucumber lime, and orange pomegranate, as well as pineapple coconut, watermelon berry, and strawberries and cream non-carbonated functional energy drinks under the CELSIUS Sweetened. It distributes its products through direct-to-store delivery distributors and direct to retailers, including supermarkets, convenience stores, drug stores, nutritional stores, and mass merchants, as well as health clubs, spas, gyms, the military, and e-commerce websites. The company was formerly known as Vector Ventures, Inc. and changed its name to Celsius Holdings, Inc. in January 2007. Celsius Holdings, Inc. was founded in 2004 and is headquartered in Boca Raton, Florida.

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