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Financial Review: Primo Water (NASDAQ:PRMW) & Zevia PBC (NYSE:ZVIA)

Financial News Live ·  Oct 3, 2022 16:23

Primo Water (NASDAQ:PRMW – Get Rating) and Zevia PBC (NYSE:ZVIA – Get Rating) are both utilities companies, but which is the better business? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, analyst recommendations, valuation and institutional ownership.

Institutional and Insider Ownership

86.9% of Primo Water shares are owned by institutional investors. Comparatively, 40.7% of Zevia PBC shares are owned by institutional investors. 4.4% of Primo Water shares are owned by company insiders. Comparatively, 13.6% of Zevia PBC shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

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Profitability

This table compares Primo Water and Zevia PBC's net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Primo Water -0.64% 6.10% 2.17%
Zevia PBC -43.38% -68.66% -56.14%

Volatility and Risk

Primo Water has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500. Comparatively, Zevia PBC has a beta of 0.18, meaning that its share price is 82% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Primo Water and Zevia PBC, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Primo Water 0 0 0 0 N/A
Zevia PBC 0 2 3 0 2.60

Zevia PBC has a consensus price target of $11.58, indicating a potential upside of 168.13%. Given Zevia PBC's higher possible upside, analysts plainly believe Zevia PBC is more favorable than Primo Water.

Earnings and Valuation

This table compares Primo Water and Zevia PBC's gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Primo Water $2.07 billion 0.97 -$3.20 million ($0.09) -139.43
Zevia PBC $138.17 million 2.15 -$45.99 million ($1.92) -2.25

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

Summary

Primo Water beats Zevia PBC on 8 of the 13 factors compared between the two stocks.

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, 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.

About Zevia PBC

(Get Rating)

Zevia PBC, a beverage company, develops, markets, sells, and distributes various carbonated and non-carbonated soft drinks in the United States and Canada. It offers soda, energy drinks, organic tea, mixers, kidz beverages, and sparkling water. The company offers its products through various retail channels, including grocery distributors, national retailers, warehouse club, and natural products retailers, as well as e-commerce channels. It provides its products under the Zevia brand name. The company was founded in 2007 and is headquartered in Encino, California.

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