Head-to-head review of Primo Water (PRMW) and its peers

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First Water (NYSE: PRMWGet a rating) is one of 18 public companies in the ‘bottled and canned soft drinks’ industry, but how does it differ from its peers? We will compare Primo Water to related companies based on its dividend strength, analyst recommendations, risk, valuation, profitability, earnings and institutional ownership.

Profitability

This table compares the net margins, return on equity and return on assets of Primo Water and its peers.

Net margins Return on equity return on assets
Primo Water -0.15% 5.33% 1.94%
Primo Water Competitors 3.91% 0.12% 2.03%

Institutional and insider ownership

93.4% of Primo Water shares are held by institutional investors. In comparison, 51.0% of the shares of all “Bottled and canned soft drinks” companies are held by institutional investors. 5.9% of Primo Water shares are held by insiders. By comparison, 17.0% of the shares of all “Bottled and Canned Soft Drinks” companies are held by insiders. Strong institutional ownership indicates that endowments, large fund managers, and hedge funds believe a stock will outperform the market over the long term.

Analyst Notes

This is a breakdown of recent recommendations for Primo Water and its peers, as provided by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Primo Water 1 1 5 0 2.57
Primo Water Competitors 216 762 1021 36 2.43

Primo Water currently has a consensus price target of $19.30, suggesting a potential upside of 31.56%. As a group, the “bottled and canned soft drink” companies have an upside potential of 34.76%. Since Primo Water peers have higher upside potential, analysts clearly believe that Primo Water has less favorable growth aspects than its peers.

Valuation and benefits

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

Gross revenue Net revenue Price/earnings ratio
Primo Water $2.07 billion -3.20 million dollars -733.50
Primo Water Competitors $5.73 billion $413.32 million -101.43

Primo Water peers have higher revenue and profit than Primo Water. Primo Water trades at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Dividends

Primo Water pays an annual dividend of $0.28 per share and has a dividend yield of 1.9%. Primo Water distributes -1,400.0% of its profits as a dividend. As a group, the “bottled and canned soft drink” companies pay a dividend yield of 1.3% and pay out 28.0% of their earnings as a dividend. Primo Water is clearly a better dividend-paying stock than its peers, given its higher yield and lower payout ratio.

Volatility and risk

Primo Water has a beta of 1.33, meaning its stock price is 33% more volatile than the S&P 500. Comparatively, Primo Water’s peers have a beta of 1.10, meaning its stock price average is 10% more volatile than the S&P 500.

Summary

Primo Water’s peers beat Primo Water on 8 of the 15 factors compared.

About Primo Water (Get a rating)

Primo Water Corporation provides direct-to-consumer water and water filtration services in North America and Europe. It offers bottled water, purified bottled water, premium spring water, sparkling and flavored water, mineral water, filtration equipment and coffee; as well as water dispensers and self-service drinking water. The Company offers its products under 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, Water Event Pure Water Solutions, Canadian Springs, Labrador Source, Decantae, Eden, Eden Springs, Chateaud’eau and Mey Eden brands. It serves residential customers, small and medium-sized businesses, as well as regional and national businesses and retailers. 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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