Head to Head Review: Primo Water (PRMW) versus Its Peers

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 peers? We will compare Primo Water to similar businesses based on the strength of its earnings, risk, analyst recommendations, valuation, institutional ownership, profitability and dividends.

Profitability

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 -1.40% 6.15% 2.17%
Primo Water Competitors -2.67% -122.46% -2.06%

Dividends

Primo Water pays an annual dividend of $0.28 per share and has a dividend yield of 1.9%. Primo Water pays out -147.4% of its earnings in the form of a dividend. As a group, “Bottled & canned soft drinks” companies pay a dividend yield of 1.2% and pay out 18.6% 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.

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, Primo Water’s peers have a beta of 0.89, suggesting that their average stock price is 11% less volatile than the S&P 500.

Valuation & Earnings

This table compares Primo Water and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Primo Water $2.07 billion -$3.20 million -79.63
Primo Water Competitors $5.73 billion $411.16 million -12.67

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.

Institutional and 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, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Primo Water and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Primo Water 0 0 0 0 N/A
Primo Water Competitors 127 521 950 57 2.57

As a group, “Bottled & canned soft drinks” companies have a potential upside of 1.65%. Given Primo Water’s peers higher probable upside, analysts clearly believe Primo Water has less favorable growth aspects than its peers.

Summary

Primo Water beats its peers 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, 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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