Financial Comparison: Keurig Dr Pepper (NASDAQ:KDP) versus Primo Brands (NYSE:PRMB)

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

Volatility and Risk

Keurig Dr Pepper has a beta of 0.41, indicating that its stock price is 59% less volatile than the S&P 500. Comparatively, Primo Brands has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500.

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Institutional and Insider Ownership

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

Dividends

Keurig Dr Pepper pays an annual dividend of $0.92 per share and has a dividend yield of 3.0%. Primo Brands pays an annual dividend of $0.48 per share and has a dividend yield of 2.0%. Keurig Dr Pepper pays out 68.1% of its earnings in the form of a dividend. 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 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.

Profitability

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Keurig Dr Pepper and Primo Brands, as reported by MarketBeat.

Keurig Dr Pepper presently has a consensus target price of $31.57, indicating a potential upside of 3.34%. Primo Brands has a consensus target price of $25.91, indicating a potential upside of 6.79%. Given Primo Brands’ stronger consensus rating and higher probable upside, analysts clearly believe Primo Brands is more favorable than Keurig Dr Pepper.

Earnings and Valuation

This table compares Keurig Dr Pepper and Primo Brands”s top-line revenue, earnings per share and valuation.

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.

Summary

Keurig Dr Pepper beats Primo Brands on 10 of the 17 factors compared between the two stocks.

About Keurig Dr Pepper

(Get Free Report)

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.

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.

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