Reviewing Coca-Cola Europacific Partners (NASDAQ:CCEP) & Primo Brands (NYSE:PRMB)

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

Insider and Institutional Ownership

87.7% of Primo Brands shares are owned by institutional investors. Comparatively, 31.4% of Coca-Cola Europacific Partners shares are owned by institutional investors. 2.5% of Primo Brands shares are owned by company insiders. Comparatively, 3.0% of Coca-Cola Europacific Partners shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for Primo Brands and Coca-Cola Europacific Partners, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Primo Brands	0	0	4	0	3.00
Coca-Cola Europacific Partners	0	3	7	1	2.82

Primo Brands presently has a consensus target price of $37.75, suggesting a potential upside of 14.41%. Coca-Cola Europacific Partners has a consensus target price of $84.11, suggesting a potential upside of 7.61%. Given Primo Brands’ stronger consensus rating and higher possible upside, equities analysts clearly believe Primo Brands is more favorable than Coca-Cola Europacific Partners.

Earnings and Valuation

This table compares Primo Brands and Coca-Cola Europacific Partners”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Primo Brands	$4.84 billion	2.59	$238.10 million	$1.61	20.49
Coca-Cola Europacific Partners	$19.15 billion	1.88	$1.81 billion	$4.83	16.18

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

Profitability

This table compares Primo Brands and Coca-Cola Europacific Partners’ 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 Europacific Partners	N/A	N/A	N/A

Dividends

Primo Brands pays an annual dividend of $0.45 per share and has a dividend yield of 1.4%. Coca-Cola Europacific Partners pays an annual dividend of $0.79 per share and has a dividend yield of 1.0%. Primo Brands pays out 28.0% of its earnings in the form of a dividend. Coca-Cola Europacific Partners pays out 16.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Volatility & Risk

Primo Brands has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500. Comparatively, Coca-Cola Europacific Partners has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500.

Summary

Primo Brands beats Coca-Cola Europacific Partners on 10 of the 17 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 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.