Primo Water (NASDAQ: PRMW) and SuperValu (NYSE:SVU) are both small-cap consumer staples companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, valuation, dividends, risk, profitability and institutional ownership.
Institutional and Insider Ownership
69.9% of Primo Water shares are owned by institutional investors. Comparatively, 91.4% of SuperValu shares are owned by institutional investors. 13.5% of Primo Water shares are owned by company insiders. Comparatively, 1.7% of SuperValu shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This table compares Primo Water and SuperValu’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Primo Water and SuperValu’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Primo Water||$286.07 million||1.33||-$6.35 million||($0.28)||-43.86|
|SuperValu||$12.48 billion||0.05||$650.00 million||$2.03||7.72|
SuperValu has higher revenue and earnings than Primo Water. Primo Water is trading at a lower price-to-earnings ratio than SuperValu, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations and price targets for Primo Water and SuperValu, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Primo Water presently has a consensus price target of $19.00, indicating a potential upside of 54.72%. SuperValu has a consensus price target of $24.21, indicating a potential upside of 54.53%. Given Primo Water’s stronger consensus rating and higher possible upside, equities analysts plainly believe Primo Water is more favorable than SuperValu.
Risk & Volatility
Primo Water has a beta of -0.13, suggesting that its stock price is 113% less volatile than the S&P 500. Comparatively, SuperValu has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500.
SuperValu beats Primo Water on 9 of the 13 factors compared between the two stocks.
Primo Water Company Profile
Primo Water Corporation, together with its subsidiaries, provides multi-gallon purified bottled water, self-service refill water, and water dispensers in the United States and Canada. It operates in three segments: Refill, Exchange, and Dispensers. The Refill segment sells filtered drinking water dispensed directly to consumers through self-service machines. The Exchange segment sells multi-gallon purified bottled water through point of purchase display racks and recycling centers. The Dispensers segment sells water dispensers that are designed to dispense Primo and other dispenser-compatible bottled water. As of March 6, 2018, the company offers its products and services at approximately 45,000 retail locations, as well as online. Primo Water Corporation was founded in 2004 and is headquartered in Winston-Salem, North Carolina.
SuperValu Company Profile
SUPERVALU INC., together with its subsidiaries, operates as a grocery wholesaler and retailer in the United States. The company operates through two segments, Wholesale and Retail. The Wholesale segment engages in the wholesale distribution of various food and non-food products to independent retail customers, such as single and multiple grocery store operators, regional chains, and the military. This segment also provides various services, such as retail store support, advertising, couponing, e-commerce, network and data hosting solutions, and training and certification classes, as well as administrative back-office solutions. As of February 25, 2017, this segment operated approximately 1,902 stores with a network spanning 40 states. The Retail segment operates retail stores that provide groceries and various additional products, including general merchandise, home, health and beauty care, and pharmacy products. This segment operated 217 stores under the Cub Foods, Shoppers Food & Pharmacy, Shop 'n Save, Farm Fresh, and Hornbacher's banners, as well as 2 Rainbow stores. The company's stores offer a range of branded and private-label products comprising perishable and nonperishable grocery products. SUPERVALU INC. was founded in 1871 and is headquartered in Eden Prairie, Minnesota.
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