Primo Brands (NYSE:PRMB) vs. Embotelladora Andina (NYSE:AKO.B) Critical Comparison

Primo Brands (NYSE:PRMBGet Free Report) and Embotelladora Andina (NYSE:AKO.BGet Free Report) are both mid-cap consumer staples companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, institutional ownership, risk and valuation.

Insider and Institutional Ownership

87.7% of Primo Brands shares are owned by institutional investors. Comparatively, 1.6% of Embotelladora Andina shares are owned by institutional investors. 32.9% of Primo Brands shares are owned by insiders. Comparatively, 0.0% of Embotelladora Andina shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Primo Brands pays an annual dividend of $0.48 per share and has a dividend yield of 2.0%. Embotelladora Andina pays an annual dividend of $0.25 per share and has a dividend yield of 0.9%. 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. Embotelladora Andina pays out 12.3% of its earnings in the form of a dividend.

Volatility and Risk

Primo Brands has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500. Comparatively, Embotelladora Andina has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500.

Earnings and Valuation

This table compares Primo Brands and Embotelladora Andina”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Primo Brands $6.66 billion 1.31 $60.10 million $0.14 171.36
Embotelladora Andina $3.52 billion 1.32 $295.57 million $2.04 14.39

Embotelladora Andina has lower revenue, but higher earnings than Primo Brands. Embotelladora Andina 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 Embotelladora Andina’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%
Embotelladora Andina 8.70% 24.47% 8.89%

Analyst Ratings

This is a summary of recent recommendations for Primo Brands and Embotelladora Andina, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Primo Brands 0 4 9 0 2.69
Embotelladora Andina 0 1 0 1 3.00

Primo Brands currently has a consensus target price of $25.91, suggesting a potential upside of 8.00%. Given Primo Brands’ higher possible upside, research analysts plainly believe Primo Brands is more favorable than Embotelladora Andina.

Summary

Embotelladora Andina beats Primo Brands on 9 of the 17 factors compared between the two stocks.

About Primo Brands

(Get Free Report)

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 Embotelladora Andina

(Get Free Report)

Embotelladora Andina S.A., together with its subsidiaries, produces, markets, and distributes Coca-Cola soft drinks in Chile, Brazil, Argentina, and Paraguay. It also offers fruit-flavored beverages, juices, sports and energy drinks, ice tea, and bottled water. Embotelladora Andina S.A. was founded in 1946 and is headquartered in Santiago, Chile.

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