Primo Brands (NYSE:PRMB) vs. Britvic (OTCMKTS:BTVCY) Financial Analysis

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

Valuation and Earnings

This table compares Primo Brands and Britvic”s 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
Britvic	$2.41 billion	1.63	$159.57 million	N/A	N/A

Primo Brands has higher earnings, but lower revenue than Britvic.

Insider and Institutional Ownership

87.7% of Primo Brands shares are held by institutional investors. 2.5% of Primo Brands shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Primo Brands and Britvic’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%
Britvic	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current recommendations and price targets for Primo Brands and Britvic, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Primo Brands	0	0	4	0	3.00
Britvic	0	0	0	0	0.00

Primo Brands presently has a consensus target price of $37.75, suggesting a potential upside of 16.11%. Given Primo Brands’ stronger consensus rating and higher probable upside, analysts clearly believe Primo Brands is more favorable than Britvic.

Dividends

Primo Brands pays an annual dividend of $0.45 per share and has a dividend yield of 1.4%. Britvic pays an annual dividend of $0.44 per share and has a dividend yield of 1.4%. Primo Brands pays out 28.0% of its earnings in the form of a dividend.

Risk & Volatility

Primo Brands has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500. Comparatively, Britvic has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500.

Summary

Primo Brands beats Britvic on 11 of the 14 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 Britvic

Britvic plc, together with its subsidiaries, manufactures, markets, distributes, and sells soft drinks in the United Kingdom, the Republic of Ireland, France, Brazil, and internationally. It provides fruit juices, syrups, squash, mineral water, sodas, mixers, and energy and flavored drinks. The company supplies water-coolers and bottled water; offers pension funding and financing services; and designs, installs, as well as engages in maintenance of integrated tap related solutions. It offers its products under the 7UP, Aqua Libra, Ballygowan, Britvic, Fruit Shot, Gatorade, J2O, Jimmy’s Iced Coffee, Lipton, The London Essence, Mathieu Teisseire, Mountain Dew, Pepsi MAX, Plenish, Purdey’s, Robinson’s, Rockstar, R. White’s, Tango, and Teisseire brands. Britvic plc was founded in 1930 and is based in Hemel Hempstead, the United Kingdom.