Reviewing Keurig Dr Pepper (NASDAQ:KDP) and National Beverage (NASDAQ:FIZZ)

National Beverage (NASDAQ:FIZZ) and Keurig Dr Pepper (NASDAQ:KDP) are both consumer staples companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, risk, valuation, profitability, dividends, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for National Beverage and Keurig Dr Pepper, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
National Beverage	2	0	0	0	1.00
Keurig Dr Pepper	2	8	10	0	2.40

National Beverage presently has a consensus price target of $35.00, suggesting a potential upside of 4.48%. Keurig Dr Pepper has a consensus price target of $34.87, suggesting a potential upside of 24.75%. Given Keurig Dr Pepper’s stronger consensus rating and higher probable upside, analysts clearly believe Keurig Dr Pepper is more favorable than National Beverage.

Risk & Volatility

National Beverage has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500. Comparatively, Keurig Dr Pepper has a beta of 0.34, suggesting that its stock price is 66% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
National Beverage	15.55%	39.29%	27.10%
Keurig Dr Pepper	9.78%	11.19%	5.13%

Valuation and Earnings

This table compares National Beverage and Keurig Dr Pepper”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	$1.20 billion	2.61	$186.82 million	$1.99	16.83
Keurig Dr Pepper	$15.35 billion	2.47	$1.44 billion	$1.16	24.09

Keurig Dr Pepper has higher revenue and earnings than National Beverage. National Beverage is trading at a lower price-to-earnings ratio than Keurig Dr Pepper, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

24.0% of National Beverage shares are owned by institutional investors. Comparatively, 94.0% of Keurig Dr Pepper shares are owned by institutional investors. 74.7% of National Beverage shares are owned by company insiders. Comparatively, 1.0% of Keurig Dr Pepper shares are owned by company 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.

About National Beverage

National Beverage Corp., through its subsidiaries, develops, produces, markets, and sells a portfolio of sparkling waters, juices, energy drinks, and carbonated soft drinks primarily in the United States and Canada. The company's Power+ brand portfolio offers sparkling water products under the LaCroix, LaCroix Cúrate, and LaCroix NiCola; non-carbonated flavored water under the Clear Fruit; energy drink and shots under the Rip It; juice and juice-based products under Everfresh, Everfresh Premier Varietals, and Mr. Pure; and carbonated soft drinks under Shasta and Faygo brands. It serves retailers, as well as various smaller up-and-down-the-street accounts through the take-home, convenience, and food-service distribution channels. National Beverage Corp. was incorporated in 1985 and is headquartered in Fort Lauderdale, Florida.

About Keurig Dr Pepper

Keurig Dr Pepper Inc. owns, manufactures, and distributors beverages and single serve brewing systems in the United States and internationally. It operates through three segments: U.S. Refreshment Beverages, U.S. Coffee, and International. The U.S. Refreshment Beverages segment manufactures and distributes branded concentrates, syrup, and finished beverages. Its U.S. Coffee segment offers finished goods relating to K-Cup pods, single serve brewers, specialty coffee, and ready to drink coffee products through Keurig.com website. The International segment provides sales in Canada, Mexico, the Caribbean, and other international markets from the manufacture and distribution of branded concentrates, syrup, and finished beverages; and sales in Canada from the manufacture and distribution of finished goods relating to the Company's single serve brewers, KCup pods, and other coffee products. It serves retailers, third-party bottlers and distributors, retail partners, hotel chains, office coffee distributors, and end-use consumers. The company offers its products under the Dr Pepper, Canada Dry, Green Mountain Coffee Roasters, Snapple, Mott's, The Original Donut Shop, Clamato, and Core Hydration brand name. Keurig Dr Pepper Inc. was founded in 1981 and is headquartered in Burlington, Massachusetts.