Analyzing Primo Water (PRMW) and Its Competitors

Primo Water (NASDAQ: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 similar companies based on the strength of its institutional ownership, dividends, profitability, analyst recommendations, risk, earnings and valuation.

Dividends

Primo Water pays an annual dividend of $0.28 per share and has a dividend yield of 2.1%. Primo Water pays out -311.1% 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 20.9% 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 & Insider Ownership

86.9% of Primo Water shares are held by institutional investors. Comparatively, 37.1% of shares of all “Bottled & canned soft drinks” companies are held by institutional investors. 4.4% of Primo Water shares are held by insiders. Comparatively, 13.8% of shares of all “Bottled & canned soft drinks” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings & 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 -150.54
Primo Water Competitors $5.73 billion $411.16 million 6.98

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 1.11, meaning that its stock price is 11% more volatile than the S&P 500. Comparatively, Primo Water’s rivals have a beta of 0.85, meaning that their average stock price is 15% less 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 -0.64% 6.10% 2.17%
Primo Water Competitors -0.80% -17.69% -2.72%

Analyst Ratings

This is a summary of current recommendations for Primo Water and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Primo Water 0 0 0 0 N/A
Primo Water Competitors 117 510 930 45 2.56

As a group, “Bottled & canned soft drinks” companies have a potential upside of 12.85%. Given Primo Water’s rivals higher probable upside, analysts clearly believe Primo Water has less favorable growth aspects than its rivals.

Summary

Primo Water beats its rivals on 7 of the 12 factors compared.

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.

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