Critical Comparison: Coca-Cola HBC (OTCMKTS:CCHGY) vs. Primo Brands (NYSE:PRMB)

Primo Brands (NYSE:PRMB) and Coca-Cola HBC (OTCMKTS:CCHGY) are both large-cap consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, profitability, valuation, dividends, institutional ownership and earnings.

Institutional & Insider Ownership

87.7% of Primo Brands shares are owned by institutional investors. 2.5% of Primo Brands shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Primo Brands and Coca-Cola HBC”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Primo Brands	$1.77 billion	6.96	$238.10 million	$1.61	20.19
Coca-Cola HBC	$11.02 billion	1.18	$688.88 million	N/A	N/A

Coca-Cola HBC has higher revenue and earnings than Primo Brands.

Analyst Ratings

This is a summary of current recommendations for Primo Brands and Coca-Cola HBC, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Primo Brands	0	0	4	0	3.00
Coca-Cola HBC	0	3	2	1	2.67

Primo Brands currently has a consensus target price of $37.75, suggesting a potential upside of 16.11%. Given Primo Brands’ stronger consensus rating and higher possible upside, research analysts clearly believe Primo Brands is more favorable than Coca-Cola HBC.

Volatility & Risk

Primo Brands has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500. Comparatively, Coca-Cola HBC has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500.

Profitability

This table compares Primo Brands and Coca-Cola HBC’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%
Coca-Cola HBC	N/A	N/A	N/A

Summary

Primo Brands beats Coca-Cola HBC on 9 of the 13 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 Coca-Cola HBC

Coca-Cola HBC AG engages in the production, distribution, and sale of non-alcoholic ready-to-drink beverages under franchise in Switzerland, the United Kingdom, North and Central America, rest of Europe, the Nordic countries, and internationally. The company offers sparkling soft drinks, adult sparkling, hydration drinks, juices, ready-to-drink tea and coffee, sports and energy drinks, dairy, stills, coffee, water, plant-based drinks, premium spirits, and snacks. It markets and sells its products under several brands, including Coca-Cola, Fanta, Sprite, Adez, Averna, Amita, Aquarius, Aperol, Avra, Deep RiverRock, Fruice, Kinley, Schweppes, and various other brands; and distributes third-party products. The company serves a range of consumer channels, including supermarkets, convenience stores, vending machines, hotels, cafés, and restaurants; and e-commerce channels. Coca-Cola HBC AG was incorporated in 1969 and is headquartered in Steinhausen, Switzerland.