Head-To-Head Contrast: Monster Beverage (NASDAQ:MNST) and Primo Water (NASDAQ:PRMW)

Monster Beverage (NASDAQ:MNSTGet Rating) and Primo Water (NASDAQ:PRMWGet Rating) are both consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, analyst recommendations, valuation and institutional ownership.

Profitability

This table compares Monster Beverage and Primo Water’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Monster Beverage 19.46% 17.91% 14.97%
Primo Water -1.40% 6.15% 2.17%

Institutional & Insider Ownership

65.5% of Monster Beverage shares are owned by institutional investors. Comparatively, 86.9% of Primo Water shares are owned by institutional investors. 10.5% of Monster Beverage shares are owned by insiders. Comparatively, 4.4% of Primo Water shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Monster Beverage has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, Primo Water has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500.

Valuation & Earnings

This table compares Monster Beverage and Primo Water’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Monster Beverage $5.54 billion 9.79 $1.38 billion $2.26 45.99
Primo Water $2.07 billion 1.17 -$3.20 million ($0.19) -79.63

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

Analyst Recommendations

This is a summary of recent ratings and price targets for Monster Beverage and Primo Water, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Monster Beverage 0 5 11 0 2.69
Primo Water 0 0 0 0 N/A

Monster Beverage presently has a consensus price target of $103.50, indicating a potential downside of 0.41%. Given Monster Beverage’s higher possible upside, research analysts clearly believe Monster Beverage is more favorable than Primo Water.

Summary

Monster Beverage beats Primo Water on 11 of the 13 factors compared between the two stocks.

About Monster Beverage

(Get Rating)

Monster Beverage Corporation, through its subsidiaries, engages in development, marketing, sale, and distribution of energy drink beverages and concentrates in the United States and internationally. The company operates through three segments: Monster Energy Drinks, Strategic Brands, and Other. It offers carbonated energy drinks, non-carbonated, ready-to-drink iced teas, lemonades, juice cocktails, single-serve juices and fruit beverages, ready-to-drink dairy and coffee drinks, energy drinks, sports drinks and single-serve still waters, and sodas that are considered natural, sparkling juices, and flavored sparkling beverages. The company sells its products to bottlers, full-service beverage distributors, as well as sells directly to retail grocery and speciality chains, wholesalers, club stores, mass merchandisers, convenience chains, drug stores, foodservice customers, value stores, e-commerce retailers, and the military; and concentrates and/or beverage bases to authorized bottling and canning operations. It provides its products under the Monster Energy, Monster Energy Ultra, Monster Rehab, Monster Energy Nitro, Java Monster, Muscle Monster, Espresso Monster, Punch Monster, Juice Monster, Monster Hydro Energy Water, Monster Hydro Super Sport, Monster HydroSport Super Fuel, Monster Super Fuel, Monster Dragon Tea, Reign Total Body Fuel, and Reign Inferno Thermogenic Fuel, as well as NOS, Full Throttle, Burn, Mother, Nalu, Ultra Energy, Play and Power Play (stylized), Relentless, BPM, BU, Gladiator, Samurai, Live+, Predator, Fury, and True North brands. The company was formerly known as Hansen Natural Corporation and changed its name to Monster Beverage Corporation in January 2012. Monster Beverage Corporation was founded in 1985 and is headquartered in Corona, California.

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.

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