Primo Brands (NYSE:PRMB) and Zevia PBC (NYSE:ZVIA) Financial Comparison

Zevia PBC (NYSE:ZVIA) and Primo Brands (NYSE:PRMB) are both consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, risk and valuation.

Risk & Volatility

Zevia PBC has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500. Comparatively, Primo Brands has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500.

Valuation and Earnings

This table compares Zevia PBC and Primo Brands”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zevia PBC	$166.42 million	1.66	-$21.49 million	($0.38)	-9.94
Primo Brands	$4.84 billion	2.59	$238.10 million	$1.61	20.55

Primo Brands has higher revenue and earnings than Zevia PBC. Zevia PBC 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 breakdown of current ratings and recommmendations for Zevia PBC and Primo Brands, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zevia PBC	0	4	0	0	2.00
Primo Brands	0	0	4	0	3.00

Zevia PBC presently has a consensus price target of $2.69, suggesting a potential downside of 28.88%. Primo Brands has a consensus price target of $37.75, suggesting a potential upside of 14.12%. Given Primo Brands’ stronger consensus rating and higher possible upside, analysts plainly believe Primo Brands is more favorable than Zevia PBC.

Institutional & Insider Ownership

53.2% of Zevia PBC shares are held by institutional investors. Comparatively, 87.7% of Primo Brands shares are held by institutional investors. 12.6% of Zevia PBC shares are held by insiders. Comparatively, 2.5% of Primo Brands shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Zevia PBC and Primo Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zevia PBC	-14.02%	-38.02%	-25.67%
Primo Brands	13.63%	8.80%	3.62%

Summary

Primo Brands beats Zevia PBC on 13 of the 14 factors compared between the two stocks.

About Zevia PBC

Zevia PBC, a beverage company, develops, markets, sells, and distributes various carbonated beverages in the United States and Canada. It offers soda, energy drinks, organic tea, and kidz drinks. The company offers its products through a network of food, drug, warehouse club, mass, natural, convenience, and e-commerce channels, as well as grocery distributors and natural product stores and specialty outlets. It provides its products under the Zevia brand name. The company was founded in 2007 and is headquartered in Encino, California.

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.