Critical Survey: Primo Brands (NYSE:PRMB) versus National Beverage (NASDAQ:FIZZ)

Primo Brands (NYSE:PRMB) and National Beverage (NASDAQ:FIZZ) are both consumer staples companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Insider and Institutional Ownership

87.7% of Primo Brands shares are held by institutional investors. Comparatively, 24.0% of National Beverage shares are held by institutional investors. 2.5% of Primo Brands shares are held by company insiders. Comparatively, 74.8% of National Beverage shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

Primo Brands has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500. Comparatively, National Beverage has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Primo Brands	13.63%	8.80%	3.62%
National Beverage	15.63%	42.80%	28.91%

Analyst Ratings

This is a breakdown of current ratings and target prices for Primo Brands and National Beverage, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Primo Brands	0	0	3	0	3.00
National Beverage	1	0	0	0	1.00

Primo Brands currently has a consensus price target of $37.00, suggesting a potential upside of 21.31%. National Beverage has a consensus price target of $45.00, suggesting a potential upside of 3.93%. Given Primo Brands’ stronger consensus rating and higher possible upside, equities analysts plainly believe Primo Brands is more favorable than National Beverage.

Earnings and Valuation

This table compares Primo Brands and National Beverage”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Primo Brands	$4.84 billion	2.39	$238.10 million	$1.61	18.94
National Beverage	$1.19 billion	3.41	$176.73 million	$1.99	21.76

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

About Primo Brands

Primo Water Corporation is a leading pure-play water solutions provider in North America and Europe. Primo operates largely under a recurring razor/razorblade revenue model. The razor in Primo’s revenue model is its industry leading line-up of sleek and innovative water dispensers, which are sold through major retailers and online at various price points or leased to customers. The dispensers help increase household penetration, which drives recurring purchases of Primo’s razorblade offering. Primo’s razorblade offering is comprised of Water Direct, Water Exchange, and Water Refill. Primo’s water solutions expand consumer access to purified, spring and mineral water to promote a healthier, more sustainable lifestyle while simultaneously reducing plastic waste and pollution. Primo is committed to its water stewardship standards and is proud to partner with the International Bottled Water Association in North America as well as with Watercoolers Europe.

About National Beverage

National Beverage Corp., through its subsidiaries, develops, produces, markets, and sells a portfolio of sparkling waters, juices, energy drinks, and carbonated soft drinks primarily in the United States and Canada. The company's Power+ brand portfolio offers sparkling water products under the LaCroix, LaCroix Cúrate, and LaCroix NiCola; non-carbonated flavored water under the Clear Fruit; energy drink and shots under the Rip It; juice and juice-based products under Everfresh, Everfresh Premier Varietals, and Mr. Pure; and carbonated soft drinks under Shasta and Faygo brands. It serves retailers, as well as various smaller up-and-down-the-street accounts through the take-home, convenience, and food-service distribution channels. National Beverage Corp. was incorporated in 1985 and is headquartered in Fort Lauderdale, Florida.