Analyzing Reed’s (REED) & Its Rivals

Reed’s (NASDAQ:REEDGet Rating) is one of 18 publicly-traded companies in the “Bottled & canned soft drinks” industry, but how does it compare to its peers? We will compare Reed’s to similar businesses based on the strength of its dividends, institutional ownership, valuation, analyst recommendations, profitability, risk and earnings.

Risk and Volatility

Reed’s has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500. Comparatively, Reed’s’ peers have a beta of 1.10, suggesting that their average stock price is 10% more volatile than the S&P 500.

Earnings & Valuation

This table compares Reed’s and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Reed’s $49.60 million -$16.40 million -1.69
Reed’s Competitors $5.72 billion $412.51 million -99.78

Reed’s’ peers have higher revenue and earnings than Reed’s. Reed’s is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Reed’s and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Reed’s -33.07% -187.58% -67.39%
Reed’s Competitors 3.91% 0.12% 2.03%

Analyst Ratings

This is a summary of recent recommendations and price targets for Reed’s and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Reed’s 0 0 2 0 3.00
Reed’s Competitors 215 759 1020 36 2.43

Reed’s currently has a consensus price target of $1.05, suggesting a potential upside of 265.85%. As a group, “Bottled & canned soft drinks” companies have a potential upside of 36.67%. Given Reed’s’ stronger consensus rating and higher probable upside, equities analysts plainly believe Reed’s is more favorable than its peers.

Institutional & Insider Ownership

30.8% of Reed’s shares are held by institutional investors. Comparatively, 51.0% of shares of all “Bottled & canned soft drinks” companies are held by institutional investors. 9.3% of Reed’s shares are held by company insiders. Comparatively, 17.2% of shares of all “Bottled & canned soft drinks” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Reed’s peers beat Reed’s on 8 of the 13 factors compared.

About Reed’s (Get Rating)

Reed’s, Inc. engages in the provision of carbonated and non-carbonated beverages. Its product lines include Reed’s Ginger Brews, Virgil’s Root Beer, and Flying Caldron Butterscotch Beer. The company was founded by Christopher J. Reed in June 1987 and is headquartered in Norwalk, CT.

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