Contrasting Primo Brands (NYSE:PRMB) and Embotelladora Andina (NYSE:AKO.A)

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

Volatility & Risk

Embotelladora Andina has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500. Comparatively, Primo Brands has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500.

Dividends

Embotelladora Andina pays an annual dividend of $0.67 per share and has a dividend yield of 2.9%. Primo Brands pays an annual dividend of $0.48 per share and has a dividend yield of 1.9%. Embotelladora Andina pays out 32.8% 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. Embotelladora Andina is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Embotelladora Andina and Primo Brands’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Embotelladora Andina 8.70% 24.47% 8.89%
Primo Brands 0.88% 13.98% 4.00%

Institutional and Insider Ownership

0.1% of Embotelladora Andina shares are held by institutional investors. Comparatively, 87.7% of Primo Brands shares are held by institutional investors. 0.0% of Embotelladora Andina shares are held by insiders. Comparatively, 32.9% of Primo Brands shares are held 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.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Embotelladora Andina and Primo Brands, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Embotelladora Andina 0 0 0 0 0.00
Primo Brands 0 4 9 0 2.69

Primo Brands has a consensus price target of $25.91, suggesting a potential upside of 3.88%. Given Primo Brands’ stronger consensus rating and higher probable upside, analysts plainly believe Primo Brands is more favorable than Embotelladora Andina.

Valuation & Earnings

This table compares Embotelladora Andina and Primo Brands”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Embotelladora Andina $3.52 billion 1.02 $295.57 million $2.04 11.15
Primo Brands $6.66 billion 1.36 $60.10 million $0.14 178.15

Embotelladora Andina has higher earnings, but lower revenue 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.

Summary

Primo Brands beats Embotelladora Andina on 9 of the 16 factors compared between the two stocks.

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.

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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