Coca-Cola FEMSA (NYSE:KOF – Get Rating) and Primo Water (NASDAQ:PRMW – Get Rating) are both consumer staples companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, analyst recommendations, dividends and profitability.
Earnings & Valuation
This table compares Coca-Cola FEMSA and Primo Water's revenue, earnings per share and valuation.
Get Coca-Cola FEMSA alerts:| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Coca-Cola FEMSA | $9.56 billion | 10.89 | $766.00 million | $3.92 | 15.81 |
| Primo Water | $2.07 billion | 1.05 | -$3.20 million | ($0.09) | -150.54 |
Coca-Cola FEMSA has higher revenue and earnings than Primo Water. Primo Water is trading at a lower price-to-earnings ratio than Coca-Cola FEMSA, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Coca-Cola FEMSA has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500. Comparatively, Primo Water has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500.Institutional and Insider Ownership
1.3% of Coca-Cola FEMSA shares are held by institutional investors. Comparatively, 86.9% of Primo Water shares are held by institutional investors. 1.0% of Coca-Cola FEMSA shares are held by company insiders. Comparatively, 4.4% of Primo Water shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Coca-Cola FEMSA and Primo Water's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Coca-Cola FEMSA | 7.97% | 13.40% | 6.06% |
| Primo Water | -0.64% | 6.10% | 2.17% |
Analyst Recommendations
This is a summary of current ratings and recommmendations for Coca-Cola FEMSA and Primo Water, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Coca-Cola FEMSA | 0 | 3 | 2 | 0 | 2.40 |
| Primo Water | 0 | 0 | 0 | 0 | N/A |
Coca-Cola FEMSA currently has a consensus target price of $61.00, indicating a potential downside of 1.60%. Given Coca-Cola FEMSA's higher possible upside, equities analysts clearly believe Coca-Cola FEMSA is more favorable than Primo Water.
Dividends
Coca-Cola FEMSA pays an annual dividend of $2.65 per share and has a dividend yield of 4.3%. Primo Water pays an annual dividend of $0.28 per share and has a dividend yield of 2.1%. Coca-Cola FEMSA pays out 67.6% of its earnings in the form of a dividend. Primo Water pays out -311.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Summary
Coca-Cola FEMSA beats Primo Water on 11 of the 15 factors compared between the two stocks.
About Coca-Cola FEMSA
(Get Rating)
Coca-Cola FEMSA, S.A.B. de C.V., a franchise bottler, produces, markets, sells, and distributes Coca-Cola trademark beverages. The company offers sparkling beverages, including colas and flavored sparkling beverages; and waters and other beverages, such as juice drinks, coffee, teas, milk, value-added dairy products, sports and energy drinks, and plant-based drinks. It provides a portfolio of products through retail outlets, such as wholesale supermarkets, discount stores, and convenience stores; retailers, such as restaurants and bars, as well as stadiums, auditoriums, and theaters; points-of-sale outlets; and home delivery, supermarkets, and other locations. In addition, the company distributes and sells Heineken beer products in its Brazilian territories. It operates in Mexico, Guatemala, Nicaragua, Costa Rica, Panama, Colombia, Brazil, Argentina, and Uruguay. The company was founded in 1979 and is headquartered in Mexico City, Mexico. Coca-Cola FEMSA, S.A.B. de C.V. is a subsidiary of Fomento Economico Mexicano, S.A.B. de C.V.
About Primo Water
(Get Rating)
Primo Water Corporation provides pure-play water solutions for residential and commercial customers. It offers bottled water, water dispensers, purified bottled water, self-service refill drinking water, premium spring, mineral water, sparkling and flavored water, filtration equipment, and coffee. The company offers its products under the Primo, Alhambra, Crystal Rock, Mountain Valley, Deep Rock, Hinckley Springs, Crystal Springs, Kentwood Springs, Mount Olympus, Pureflo, Nursery, Sierra Springs, Sparkletts, Clear Mountain Natural Spring Water, Earth2O, Renü, and Water Event Pure Water Solutions brands in the United States; Canadian Springs and Labrador Source brands in Canada; and Decantae, Eden, Eden Springs, Chateaud'eau, and Mey Eden brands in Europe and Israel. The company sells its products through retailers and online at various price points. The company was formerly known as Cott Corporation and changed its name to Primo Water Corporation in March 2020. Primo Water Corporation was incorporated in 1955 and is headquartered in Tampa, Florida.
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