Dr Pepper Snapple Group (DPS) versus National Beverage Corp. (FIZZ) Head to Head Analysis
Dr Pepper Snapple Group (NYSE: DPS) and National Beverage Corp. (NASDAQ:FIZZ) are both mid-cap consumer staples companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, valuation, dividends and analyst recommendations.
This table compares Dr Pepper Snapple Group and National Beverage Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Dr Pepper Snapple Group||11.73%||38.28%||8.50%|
|National Beverage Corp.||13.38%||49.70%||32.30%|
This is a breakdown of recent ratings and price targets for Dr Pepper Snapple Group and National Beverage Corp., as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Dr Pepper Snapple Group||0||6||4||0||2.40|
|National Beverage Corp.||2||1||0||0||1.33|
Dr Pepper Snapple Group currently has a consensus target price of $100.13, indicating a potential upside of 12.75%. National Beverage Corp. has a consensus target price of $85.67, indicating a potential downside of 23.59%. Given Dr Pepper Snapple Group’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Dr Pepper Snapple Group is more favorable than National Beverage Corp..
Dr Pepper Snapple Group pays an annual dividend of $2.32 per share and has a dividend yield of 2.6%. National Beverage Corp. does not pay a dividend. Dr Pepper Snapple Group pays out 55.6% of its earnings in the form of a dividend. Dr Pepper Snapple Group has raised its dividend for 7 consecutive years.
Insider and Institutional Ownership
90.0% of Dr Pepper Snapple Group shares are held by institutional investors. Comparatively, 21.8% of National Beverage Corp. shares are held by institutional investors. 0.6% of Dr Pepper Snapple Group shares are held by company insiders. Comparatively, 75.2% of National Beverage Corp. shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Dr Pepper Snapple Group and National Beverage Corp.’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Dr Pepper Snapple Group||$6.57 billion||2.46||$1.58 billion||$4.17||21.29|
|National Beverage Corp.||$869.64 million||6.01||$189.51 million||$2.50||44.85|
Dr Pepper Snapple Group has higher revenue and earnings than National Beverage Corp.. Dr Pepper Snapple Group is trading at a lower price-to-earnings ratio than National Beverage Corp., indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Dr Pepper Snapple Group has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500. Comparatively, National Beverage Corp. has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500.
Dr Pepper Snapple Group beats National Beverage Corp. on 10 of the 17 factors compared between the two stocks.
Dr Pepper Snapple Group Company Profile
Dr Pepper Snapple Group, Inc. is an integrated brand owner, manufacturer and distributor of non-alcoholic beverages in the United States, Mexico and Canada. The Company offers a diverse portfolio of flavored (non-cola) carbonated soft drinks (CSDs) and non-carbonated beverages (NCBs), including ready-to-drink teas, juices, juice drinks, water and mixers. The Company’s segments include Beverage Concentrates, Packaged Beverages and Latin America Beverages. The Company’s brand portfolio includes CSD brands, such as Dr Pepper, Canada Dry, Penafiel, Squirt, 7UP, Crush, A&W, Sunkist soda and Schweppes, and NCB brands, such as Snapple, Hawaiian Punch, Mott’s and Clamato. The Company’s NCB brands include Snapple, Hawaiian Punch, Mott’s, FIJI mineral water, Clamato, Yoo-Hoo, Deja Blue, Bai Brands, ReaLemon, AriZona tea, Vita Coco coconut water, Mr and Mrs T mixers, BodyArmor, Nantucket Nectars, Garden Cocktail, Mistic and Rose’s.
National Beverage Corp. Company Profile
National Beverage Corp. is a holding company. The Company develops, produces, markets and sells a diverse portfolio of flavored beverage products primarily in North America. The Company’s brands consist of beverages geared to the active and health-conscious consumer (Power+ Brands), including sparkling waters, energy drinks and juices, and carbonated soft drinks in a range of flavors, including regular, sugar-free and reduced calorie options. In addition, the Company produces soft drinks for certain retailers, such as allied brands. The Company’s portfolio of Power+ Brands includes LaCroix, LaCroix Curate, LaCroix NiCola and Shasta sparkling water products; Rip It energy drinks and shots, and Everfresh, Everfresh Premier Varietals and Mr. Pure juice and juice-based products. The Company’s carbonated soft drinks include Shasta and Faygo, iconic brands. The Company had, as of April 30, 2016, 12 production facilities located near metropolitan markets across the continental United States.
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