Dr Pepper Snapple Group (DPS) and National Beverage Corp. (FIZZ) Critical Analysis
National Beverage Corp. (NASDAQ: FIZZ) and Dr Pepper Snapple Group (NYSE:DPS) are both mid-cap consumer staples companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, earnings, institutional ownership, profitability and dividends.
Volatility and Risk
National Beverage Corp. has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500. Comparatively, Dr Pepper Snapple Group has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500.
This table compares National Beverage Corp. and Dr Pepper Snapple Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|National Beverage Corp.||13.38%||49.70%||32.30%|
|Dr Pepper Snapple Group||11.73%||38.28%||8.50%|
Valuation & Earnings
This table compares National Beverage Corp. and Dr Pepper Snapple Group’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|National Beverage Corp.||$869.64 million||5.10||$189.51 million||$2.50||38.10|
|Dr Pepper Snapple Group||$6.57 billion||2.50||$1.58 billion||$4.17||21.66|
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.
Insider & Institutional Ownership
21.7% of National Beverage Corp. shares are held by institutional investors. Comparatively, 90.2% of Dr Pepper Snapple Group shares are held by institutional investors. 75.2% of National Beverage Corp. shares are held by insiders. Comparatively, 0.6% of Dr Pepper Snapple Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
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.
This is a breakdown of current recommendations for National Beverage Corp. and Dr Pepper Snapple Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|National Beverage Corp.||2||1||0||0||1.33|
|Dr Pepper Snapple Group||0||6||5||0||2.45|
National Beverage Corp. presently has a consensus target price of $76.67, indicating a potential downside of 19.50%. Dr Pepper Snapple Group has a consensus target price of $100.00, indicating a potential upside of 10.71%. Given Dr Pepper Snapple Group’s stronger consensus rating and higher probable upside, analysts clearly believe Dr Pepper Snapple Group is more favorable than National Beverage Corp..
Dr Pepper Snapple Group beats National Beverage Corp. on 10 of the 17 factors compared between the two stocks.
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.
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.
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