Financial Comparison: Celsius (NASDAQ:CELH) and Primo Brands (NYSE:PRMB)

Primo Brands (NYSE:PRMB) and Celsius (NASDAQ:CELH) are both mid-cap consumer staples companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, valuation, profitability and analyst recommendations.

Profitability

This table compares Primo Brands and Celsius’ 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%
Celsius	15.61%	59.40%	12.96%

Insider and Institutional Ownership

87.7% of Primo Brands shares are held by institutional investors. Comparatively, 61.0% of Celsius shares are held by institutional investors. 2.5% of Primo Brands shares are held by company insiders. Comparatively, 2.2% of Celsius shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Primo Brands has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500. Comparatively, Celsius has a beta of 1.76, meaning that its stock price is 76% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Primo Brands and Celsius, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Primo Brands	0	0	1	0	3.00
Celsius	1	4	13	0	2.67

Primo Brands currently has a consensus target price of $33.00, suggesting a potential upside of 6.01%. Celsius has a consensus target price of $50.28, suggesting a potential upside of 83.76%. Given Celsius’ higher possible upside, analysts plainly believe Celsius is more favorable than Primo Brands.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Primo Brands	$4.84 billion	1.03	$238.10 million	$1.61	19.34
Celsius	$1.37 billion	4.69	$226.80 million	$0.72	38.00

Primo Brands has higher revenue and earnings than Celsius. Primo Brands is trading at a lower price-to-earnings ratio than Celsius, indicating that it is currently the more affordable of the two stocks.

Summary

Celsius beats Primo Brands on 8 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 Celsius

Celsius Holdings, Inc. develops, processes, markets, distributes, and sells functional energy drinks and liquid supplements in the United States, Australia, New Zealand, Canadian, European, Middle Eastern, Asia-Pacific, and internationally. The company offers CELSIUS, a fitness drink or supplement designed to accelerate metabolism and burn body fat; various flavors and carbonated and non-carbonated functional energy drinks under the CELSIUS Originals and Vibe name, as well as functional energy drink under the CELSIUS Essentials and CELSIUS On-the-Go Powder names; and CELSIUS ready-to drink products. It distributes its products through direct-to-store delivery, distributors, supermarkets, convenience stores, drug stores, nutritional stores, and mass merchants, as well as health clubs, gyms, the military, and e-commerce websites. The company was formerly known as Vector Ventures, Inc. and changed its name to Celsius Holdings, Inc. in January 2007. Celsius Holdings, Inc. was founded in 2004 and is headquartered in Boca Raton, Florida.