Primo Water (NASDAQ:PRMW) and DTS8 Coffee (OTCMKTS:BKCT) are both small-cap consumer staples companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, analyst recommendations, profitability and earnings.
Insider & Institutional Ownership
78.3% of Primo Water shares are held by institutional investors. 13.5% of Primo Water shares are held by company insiders. Comparatively, 26.6% of DTS8 Coffee shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This table compares Primo Water and DTS8 Coffee’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||1.96||-$6.35 million||($0.28)||-51.86|
DTS8 Coffee has lower revenue, but higher earnings than Primo Water.
This is a summary of current recommendations for Primo Water and DTS8 Coffee, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Primo Water presently has a consensus target price of $18.50, suggesting a potential upside of 27.41%. Given Primo Water’s higher probable upside, equities research analysts clearly believe Primo Water is more favorable than DTS8 Coffee.
This table compares Primo Water and DTS8 Coffee’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility & Risk
Primo Water has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500. Comparatively, DTS8 Coffee has a beta of -0.77, indicating that its share price is 177% less volatile than the S&P 500.
Primo Water beats DTS8 Coffee on 8 of the 10 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.
DTS8 Coffee Company Profile
DTS8 Coffee Company, Ltd., through its subsidiaries, engages in the roasting, marketing, and sale of gourmet roasted coffee in Shanghai and other parts of China. It markets and sells its coffee under the DTS8 Coffee, Don Manuel, and private label brands through distribution channels that serve consumers at restaurants, multi-location coffee shops, and offices. The company was formerly known as Berkeley Coffee & Tea, Inc. and changed its name to DTS8 Coffee Company, Ltd. in January 2013. DTS8 Coffee Company, Ltd. was founded in 2009 and is based in Jiangqiao, China.
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