Primo Brands (NYSE:PRMB) & Keurig Dr Pepper (NASDAQ:KDP) Head to Head Contrast

Primo Brands (NYSE:PRMB) and Keurig Dr Pepper (NASDAQ:KDP) are both consumer staples companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, risk, valuation, institutional ownership, profitability and dividends.

Risk & Volatility

Primo Brands has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500. Comparatively, Keurig Dr Pepper has a beta of 0.41, indicating that its share price is 59% less volatile than the S&P 500.

Valuation and Earnings

This table compares Primo Brands and Keurig Dr Pepper”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Primo Brands	$6.66 billion	1.36	$60.10 million	$0.14	178.48
Keurig Dr Pepper	$16.60 billion	2.47	$2.08 billion	$1.35	22.33

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

Analyst Recommendations

This is a summary of recent ratings for Primo Brands and Keurig Dr Pepper, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Primo Brands	0	4	9	0	2.69
Keurig Dr Pepper	0	10	6	0	2.38

Primo Brands presently has a consensus price target of $25.91, indicating a potential upside of 3.69%. Keurig Dr Pepper has a consensus price target of $31.57, indicating a potential upside of 4.73%. Given Keurig Dr Pepper’s higher probable upside, analysts clearly believe Keurig Dr Pepper is more favorable than Primo Brands.

Dividends

Primo Brands pays an annual dividend of $0.48 per share and has a dividend yield of 1.9%. Keurig Dr Pepper pays an annual dividend of $0.92 per share and has a dividend yield of 3.1%. Primo Brands pays out 342.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Keurig Dr Pepper pays out 68.1% of its earnings in the form of a dividend. Keurig Dr Pepper has raised its dividend for 4 consecutive years. Keurig Dr Pepper is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

87.7% of Primo Brands shares are owned by institutional investors. Comparatively, 94.0% of Keurig Dr Pepper shares are owned by institutional investors. 32.9% of Primo Brands shares are owned by insiders. Comparatively, 0.3% of Keurig Dr Pepper shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Primo Brands and Keurig Dr Pepper’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Primo Brands	0.88%	13.98%	4.00%
Keurig Dr Pepper	10.81%	10.51%	4.64%

Summary

Keurig Dr Pepper beats Primo Brands on 11 of the 17 factors compared between the two stocks.

About Primo Brands

Primo Brands Corp. is a branded beverage company, which focuses on healthy hydration. It delivers sustainably and domestically sourced diversified offerings across products, formats, channels, price points and consumer occasions, distributed in the United States and Canada. The company provides water filtration units for home and business consumers across North America. It also offers reusable packaging, helping to reduce waste through its reusable, multi-serve bottles and innovative brand packaging portfolio, which includes recycled plastic, aluminum and glass. Primo Brands was founded in 2024 and is headquartered in Tampa, FL.

About Keurig Dr Pepper

Keurig Dr Pepper Inc. owns, manufactures, and distributors beverages and single serve brewing systems in the United States and internationally. It operates through three segments: U.S. Refreshment Beverages, U.S. Coffee, and International. The U.S. Refreshment Beverages segment manufactures and distributes branded concentrates, syrup, and finished beverages. Its U.S. Coffee segment offers finished goods relating to K-Cup pods, single serve brewers, specialty coffee, and ready to drink coffee products through Keurig.com website. The International segment provides sales in Canada, Mexico, the Caribbean, and other international markets from the manufacture and distribution of branded concentrates, syrup, and finished beverages; and sales in Canada from the manufacture and distribution of finished goods relating to the Company's single serve brewers, KCup pods, and other coffee products. It serves retailers, third-party bottlers and distributors, retail partners, hotel chains, office coffee distributors, and end-use consumers. The company offers its products under the Dr Pepper, Canada Dry, Green Mountain Coffee Roasters, Snapple, Mott's, The Original Donut Shop, Clamato, and Core Hydration brand name. Keurig Dr Pepper Inc. was founded in 1981 and is headquartered in Burlington, Massachusetts.