Coca-Cola Europacific Partners (NASDAQ:CCEP – Get Free Report) and Primo Brands (NYSE:PRMB – Get Free Report) are both large-cap consumer staples companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.
Risk & Volatility
Coca-Cola Europacific Partners has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, Primo Brands has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500.
Profitability
This table compares Coca-Cola Europacific Partners and Primo Brands’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Coca-Cola Europacific Partners | N/A | N/A | N/A |
Primo Brands | 13.63% | 8.80% | 3.62% |
Valuation & Earnings
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Coca-Cola Europacific Partners | $19.81 billion | 1.85 | $1.81 billion | N/A | N/A |
Primo Brands | $1.77 billion | 7.11 | $238.10 million | $1.61 | 20.61 |
Coca-Cola Europacific Partners has higher revenue and earnings than Primo Brands.
Institutional and Insider Ownership
31.4% of Coca-Cola Europacific Partners shares are held by institutional investors. Comparatively, 87.7% of Primo Brands shares are held by institutional investors. 3.0% of Coca-Cola Europacific Partners shares are held by insiders. Comparatively, 2.5% of Primo Brands shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Dividends
Coca-Cola Europacific Partners pays an annual dividend of $0.79 per share and has a dividend yield of 1.0%. Primo Brands pays an annual dividend of $0.45 per share and has a dividend yield of 1.4%. Primo Brands pays out 28.0% of its earnings in the form of a dividend.
Analyst Ratings
This is a breakdown of current ratings and target prices for Coca-Cola Europacific Partners and Primo Brands, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Coca-Cola Europacific Partners | 0 | 3 | 7 | 1 | 2.82 |
Primo Brands | 0 | 0 | 4 | 0 | 3.00 |
Coca-Cola Europacific Partners currently has a consensus target price of $84.11, indicating a potential upside of 6.04%. Primo Brands has a consensus target price of $37.75, indicating a potential upside of 13.74%. Given Primo Brands’ stronger consensus rating and higher probable upside, analysts clearly believe Primo Brands is more favorable than Coca-Cola Europacific Partners.
Summary
Primo Brands beats Coca-Cola Europacific Partners on 9 of the 15 factors compared between the two stocks.
About Coca-Cola Europacific Partners
Coca-Cola Europacific Partners PLC, together with its subsidiaries, produces, distributes, and sells a range of non-alcoholic ready to drink beverages. It offers flavours, mixers, and energy drinks; soft drinks, waters, enhanced water, and isotonic drinks; and ready-to-drink tea and coffee, juices, and other drinks. The company provides its products under the Coca-Cola, Diet Coke, Coca-Cola Zero Sugar, Fanta, Sprite, Monster Energy, Coca-Cola Energy, Relentless, nalu, URGE, BURN, Kuli, REIGN, POWERADE, Appletiser, Schweppes, FINLEY, mezzo mix, Royal Bliss, Lift, Vio SCHORLE, Coca-Cola Signature Mixers, NORDIC MIST, smartwater, Chaudfontaine, AQUARIUS, VILAS del Turbon, BONAQUA, Apollinaris, Krystal, Honest, Costa Coffee, Fuzetea, CHAQWA, NESTEA, Capri-Sun, Oasis, Minute Maid, MER, and Tropico brands. In addition, it engages in the bottling and other operations. The company was formerly known as Coca-Cola European Partners plc and changed its name to Coca-Cola Europacific Partners PLC in May 2021. The company was founded in 1904 and is based in Uxbridge, the United Kingdom.
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.
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