Primo Water (NASDAQ: PRMW) and Performance Food Group (NYSE:PFGC) are both consumer staples companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, dividends, risk, profitability, analyst recommendations, earnings and institutional ownership.
Institutional & Insider Ownership
70.1% of Primo Water shares are owned by institutional investors. Comparatively, 94.9% of Performance Food Group shares are owned by institutional investors. 15.8% of Primo Water shares are owned by insiders. Comparatively, 3.7% of Performance Food Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This is a summary of recent recommendations for Primo Water and Performance Food Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Performance Food Group||0||5||4||0||2.44|
Primo Water presently has a consensus target price of $18.50, suggesting a potential upside of 51.76%. Performance Food Group has a consensus target price of $33.86, suggesting a potential upside of 13.61%. Given Primo Water’s stronger consensus rating and higher probable upside, equities analysts clearly believe Primo Water is more favorable than Performance Food Group.
Earnings & Valuation
This table compares Primo Water and Performance Food Group’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Primo Water||$286.07 million||1.32||-$6.35 million||($0.28)||-43.54|
|Performance Food Group||$16.76 billion||0.18||$96.30 million||$1.24||24.03|
Performance Food Group has higher revenue and earnings than Primo Water. Primo Water is trading at a lower price-to-earnings ratio than Performance Food Group, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Primo Water has a beta of -0.13, indicating that its stock price is 113% less volatile than the S&P 500. Comparatively, Performance Food Group has a beta of 0.32, indicating that its stock price is 68% less volatile than the S&P 500.
This table compares Primo Water and Performance Food Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Performance Food Group||1.24%||15.69%||3.86%|
Performance Food Group beats Primo Water on 10 of the 14 factors compared between the two stocks.
About Primo Water
Primo Water Corporation (Primo) provides multi-gallon purified bottled water, self-service refill water and water dispensers. The Company’s products are sold through various retailers in the United States and Canada. It operates through two segments: Primo Water (Water) and Primo Dispensers (Dispensers). The Water segment consists of the sale of multi-gallon purified bottled water (Exchange) and its self-service filtered drinking water (Refill). The Dispensers segment sells water dispensers that are designed to dispense Primo and other dispenser-compatible bottled water. As of December 31, 2016, its products were offered in the United States and in Canada at over 46,000 combined retail locations. Exchange and Refill provide consumers the ability of either exchanging empty bottles and purchasing full bottles or refilling the empty bottles at any participating retailer. The Company sources three- and five-gallon water bottles from various independent vendors for use in Exchange.
About Performance Food Group
Performance Food Group Company, through its subsidiaries, markets and distributes food and food-related products. The Company operates through three segments: Performance Foodservice, PFG Customized and Vistar. The Performance Foodservice segment distributes a range of national brands, customer brands, and branded food and food-related products. It sells to independent or street, and multi-unit or chain, restaurants and other institutions. Its PFG Customized segment provides service to family and casual dining restaurant chains, and fast casual and quick service restaurant chains. Its Vistar segment specializes in distributing candy, snacks, beverages and other items nationally to the vending, office coffee service, theater, hospitality and other channels. Its products include a range of frozen foods, such as meats, fully prepared appetizers and entrees, and desserts; a range of canned and dry foods; fresh meats; dairy products; beverage products, and snack and other products.
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