Primo Water (NASDAQ:PRMW – Get Rating) is one of 18 publicly-traded companies in the “Bottled & canned soft drinks” industry, but how does it compare to its peers? We will compare Primo Water to related companies based on the strength of its valuation, earnings, risk, dividends, analyst recommendations, institutional ownership and profitability.
Risk and Volatility
Primo Water has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, Primo Water’s peers have a beta of 0.85, indicating that their average share price is 15% less volatile than the S&P 500.
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 peers, given its higher yield and lower payout ratio.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Primo Water Competitors||117||510||930||45||2.56|
As a group, “Bottled & canned soft drinks” companies have a potential upside of 17.82%. Given Primo Water’s peers higher probable upside, analysts plainly believe Primo Water has less favorable growth aspects than its peers.
Valuation and Earnings
This table compares Primo Water and its peers top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Primo Water||$2.07 billion||-$3.20 million||-144.76|
|Primo Water Competitors||$5.73 billion||$411.16 million||5.13|
Primo Water’s peers have higher revenue and earnings than Primo Water. Primo Water is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Insider & Institutional Ownership
86.9% of Primo Water shares are owned by institutional investors. Comparatively, 37.1% of shares of all “Bottled & canned soft drinks” companies are owned by institutional investors. 4.4% of Primo Water shares are owned by insiders. Comparatively, 13.8% of shares of all “Bottled & canned soft drinks” companies are owned by 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.
This table compares Primo Water and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Primo Water Competitors||-0.80%||-28.26%||-2.35%|
Primo Water beats its peers on 7 of the 12 factors compared.
Primo Water Company Profile
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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