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

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Coca-Cola HBC	$11.02 billion	1.22	$688.88 million	N/A	N/A
Primo Brands	$1.77 billion	7.10	$238.10 million	$1.61	20.59

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

Profitability

This table compares Coca-Cola HBC and Primo Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Coca-Cola HBC	N/A	N/A	N/A
Primo Brands	13.63%	8.80%	3.62%

Insider & Institutional 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 large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

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

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

Primo Brands has a consensus price target of $37.75, indicating a potential upside of 13.89%. Given Primo Brands’ stronger consensus rating and higher possible upside, analysts clearly believe Primo Brands is more favorable than Coca-Cola HBC.

Risk & Volatility

Coca-Cola HBC has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500. Comparatively, Primo Brands has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.

Summary

Primo Brands beats Coca-Cola HBC on 9 of the 13 factors compared between the two stocks.

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.

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.