Critical Contrast: Primo Brands (PRMB) versus Its Competitors

Primo Brands (NYSE:PRMB) is one of 18 public companies in the “Bottled & canned soft drinks” industry, but how does it weigh in compared to its competitors? We will compare Primo Brands to similar businesses based on the strength of its analyst recommendations, valuation, dividends, profitability, institutional ownership, earnings and risk.

Insider & Institutional Ownership

87.7% of Primo Brands shares are held by institutional investors. Comparatively, 48.3% of shares of all “Bottled & canned soft drinks” companies are held by institutional investors. 2.5% of Primo Brands shares are held by company insiders. Comparatively, 14.5% of shares of all “Bottled & canned soft drinks” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Primo Brands pays an annual dividend of $0.36 per share and has a dividend yield of 1.2%. Primo Brands pays out 22.4% of its earnings in the form of a dividend. As a group, “Bottled & canned soft drinks” companies pay a dividend yield of 1.0% and pay out 19.1% of their earnings in the form of a dividend.

Volatility & Risk

Primo Brands has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500. Comparatively, Primo Brands’ competitors have a beta of 0.90, suggesting that their average stock price is 10% less volatile than the S&P 500.

Profitability

This table compares Primo Brands and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Primo Brands	13.63%	8.80%	3.62%
Primo Brands Competitors	9.09%	19.71%	7.31%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Primo Brands and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Primo Brands	0	0	1	0	3.00
Primo Brands Competitors	191	654	1220	114	2.58

Primo Brands currently has a consensus target price of $33.00, indicating a potential upside of 6.14%. As a group, “Bottled & canned soft drinks” companies have a potential upside of 25.11%. Given Primo Brands’ competitors higher probable upside, analysts plainly believe Primo Brands has less favorable growth aspects than its competitors.

Valuation & Earnings

This table compares Primo Brands and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Primo Brands	$4.84 billion	$238.10 million	19.31
Primo Brands Competitors	$72.35 billion	$732.69 million	16.54

Primo Brands’ competitors have higher revenue and earnings than Primo Brands. Primo Brands is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

Primo Brands competitors beat Primo Brands on 8 of the 15 factors compared.

About Primo Brands

Primo Water Corporation is a leading pure-play water solutions provider in North America and Europe. Primo operates largely under a recurring razor/razorblade revenue model. The razor in Primo’s revenue model is its industry leading line-up of sleek and innovative water dispensers, which are sold through major retailers and online at various price points or leased to customers. The dispensers help increase household penetration, which drives recurring purchases of Primo’s razorblade offering. Primo’s razorblade offering is comprised of Water Direct, Water Exchange, and Water Refill. Primo’s water solutions expand consumer access to purified, spring and mineral water to promote a healthier, more sustainable lifestyle while simultaneously reducing plastic waste and pollution. Primo is committed to its water stewardship standards and is proud to partner with the International Bottled Water Association in North America as well as with Watercoolers Europe.