Primo Brands (NYSE:PRMB – Get Free Report) is one of 18 publicly-traded 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, institutional ownership, valuation, dividends, earnings, profitability and risk.
Volatility and Risk
Primo Brands has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500. Comparatively, Primo Brands’ competitors have a beta of 0.90, indicating that their average stock price is 10% less volatile than the S&P 500.
Insider & Institutional Ownership
87.7% of Primo Brands shares are owned by institutional investors. Comparatively, 48.3% of shares of all “Bottled & canned soft drinks” companies are owned by institutional investors. 2.5% of Primo Brands shares are owned by insiders. Comparatively, 14.5% of shares of all “Bottled & canned soft drinks” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Dividends
Earnings and Valuation
This table compares Primo Brands and its competitors top-line revenue, earnings per share and valuation.
Gross Revenue | Net Income | Price/Earnings Ratio | |
Primo Brands | $4.84 billion | $238.10 million | 19.24 |
Primo Brands Competitors | $72.35 billion | $732.69 million | 16.50 |
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.
Analyst Recommendations
This is a summary of current ratings and target prices for Primo Brands and its competitors, as provided 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 | 653 | 1219 | 114 | 2.58 |
Primo Brands currently has a consensus target price of $33.00, suggesting a potential upside of 6.52%. As a group, “Bottled & canned soft drinks” companies have a potential upside of 25.64%. Given Primo Brands’ competitors higher probable upside, analysts plainly believe Primo Brands has less favorable growth aspects than its competitors.
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% |
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.
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