Primo Brands (NYSE:PRMB) & Zevia PBC (NYSE:ZVIA) Head-To-Head Contrast

Primo Brands (NYSE:PRMB) and Zevia PBC (NYSE:ZVIA) are both consumer staples companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, analyst recommendations, dividends and profitability.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Primo Brands and Zevia PBC, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Primo Brands	0	0	4	0	3.00
Zevia PBC	0	4	0	0	2.00

Primo Brands currently has a consensus target price of $37.75, indicating a potential upside of 13.02%. Zevia PBC has a consensus target price of $2.69, indicating a potential downside of 18.81%. Given Primo Brands’ stronger consensus rating and higher possible upside, equities analysts clearly believe Primo Brands is more favorable than Zevia PBC.

Earnings & Valuation

This table compares Primo Brands and Zevia PBC”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Primo Brands	$1.77 billion	7.15	$238.10 million	$1.61	20.75
Zevia PBC	$153.39 million	1.58	-$21.49 million	($0.38)	-8.71

Primo Brands has higher revenue and earnings than Zevia PBC. Zevia PBC is trading at a lower price-to-earnings ratio than Primo Brands, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Primo Brands has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500. Comparatively, Zevia PBC has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500.

Insider and Institutional Ownership

87.7% of Primo Brands shares are owned by institutional investors. Comparatively, 53.2% of Zevia PBC shares are owned by institutional investors. 2.5% of Primo Brands shares are owned by insiders. Comparatively, 12.6% of Zevia PBC shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Primo Brands and Zevia PBC’s 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%
Zevia PBC	-14.02%	-38.02%	-25.67%

Summary

Primo Brands beats Zevia PBC on 13 of the 14 factors compared between the two stocks.

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.

About Zevia PBC

Zevia PBC, a beverage company, develops, markets, sells, and distributes various carbonated beverages in the United States and Canada. It offers soda, energy drinks, organic tea, and kidz drinks. The company offers its products through a network of food, drug, warehouse club, mass, natural, convenience, and e-commerce channels, as well as grocery distributors and natural product stores and specialty outlets. It provides its products under the Zevia brand name. The company was founded in 2007 and is headquartered in Encino, California.