Financial Analysis: National Beverage (FIZZ) vs. Cott (COT)

National Beverage (NASDAQ: FIZZ) and Cott (NYSE:COT) are both mid-cap consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, valuation, institutional ownership and risk.

Analyst Recommendations

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This is a breakdown of recent ratings and price targets for National Beverage and Cott, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
National Beverage 2 0 1 0 1.67
Cott 0 4 4 0 2.50

National Beverage presently has a consensus price target of $91.67, suggesting a potential upside of 2.98%. Cott has a consensus price target of $17.33, suggesting a potential upside of 17.54%. Given Cott’s stronger consensus rating and higher probable upside, analysts plainly believe Cott is more favorable than National Beverage.

Profitability

This table compares National Beverage and Cott’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
National Beverage 15.10% 56.83% 37.05%
Cott -0.05% 0.23% 0.05%

Insider and Institutional Ownership

23.7% of National Beverage shares are held by institutional investors. 75.2% of National Beverage shares are held by insiders. Comparatively, 3.0% of Cott shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares National Beverage and Cott’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
National Beverage $826.92 million 5.02 $107.04 million N/A N/A
Cott $2.27 billion 0.91 -$1.40 million $0.07 210.57

National Beverage has higher earnings, but lower revenue than Cott.

Risk & Volatility

National Beverage has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500. Comparatively, Cott has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500.

Dividends

Cott pays an annual dividend of $0.24 per share and has a dividend yield of 1.6%. National Beverage does not pay a dividend. Cott pays out 342.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

National Beverage beats Cott on 9 of the 15 factors compared between the two stocks.

National Beverage Company Profile

National Beverage Corp., through its subsidiaries, develops, produces, markets, and sells a portfolio of flavored beverage products in North America and internationally. The company offers beverages to the active and health-conscious consumers, including sparkling waters under the LaCroix, LaCroix Cúrate, LaCroix NiCola, and Shasta Sparkling Water brand names; energy drinks and shots under the Rip It brand name; juice and juice-based products under the Everfresh, Everfresh Premier Varietals, and Mr. Pure brand names; and carbonated soft drinks in various flavors comprising regular, sugar-free, and reduced-calorie options under the Shasta and Faygo brands. It serves retailers, as well as various up-and-down-the-street accounts through the take-home, convenience, and food-service distribution channels. The company sells and markets its products through an internal sales force, as well as specialized broker networks. National Beverage Corp. was founded in 1985 and is based in Fort Lauderdale, Florida. National Beverage Corp. is a subsidiary of IBS Partners, Ltd.

Cott Company Profile

Cott Corporation, together with its subsidiaries, operates as a route based service company in North America and Europe. It operates in three segments: Route Based Services; Coffee, Tea and Extract Solutions; and All Other. The company's product portfolio includes bottled water, coffee, brewed tea, water dispensers, coffee and tea brewers, specialty coffee, liquid coffee or tea concentrate, single cup coffee, cold brewed coffee, iced blend coffee or tea beverages, blended teas, hot tea, sparkling tea, coffee or tea extract solutions, filtration equipment, hot chocolate, soups, malt drinks, creamers/whiteners, cereals, beverage concentrates, and mineral water. It provides its services to residences, businesses, restaurant chains, hotels and motels, small and large retailers, and healthcare facilities. The company serves approximately 2.4 million customers or delivery points through its platform, sales and distribution facilities, and fleets, as well as through wholesalers and distributors. Cott Corporation was incorporated in 1955 and is based in Mississauga, Canada.

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